The deal was agreed at the CWIEME fair in Berlin, Hidria said a press release on Wednesday. Running until Thursday, the fair brings together leading innovative suppliers of technology and materials for electric motors.

The system will be built into mid-market and higher-end market cars as of 2016, about half a million vehicles a year, the Idria-based company said.

The latest project upgrades previously agreed contracts for the supply of key parts of hybrid drives for car makers Peugeot, Volvo, Volkswagen, Renault, Mercedes and Chrysler.

Hidria's electrical drives enables extra power on acceleration, while generating electricity when the car is braking or going downhill, charging batteries needed to start the internal-combustion engine.

Hidria says it has already won over many a demanding car manufacturer with its innovative solutions but also aircraft makers, manufacturers of medical equipment, pumps, hand tools and other products.