Mitsubishi Motors Corp. and PSA Peugeot Citroen announced today that they have both signed a “Memorandum of Understanding” regarding teaming up on electric vehicles based on a vehicle currently under development by Mitsubishi in Japan.

Basically, that means that PSA Peugeot Citroen will now be selling Mitsubishi’s i MiEV in the European market with their badge on it.

Both companies are targeting a market launch by the end of 2010 or at the very beginning of 2011. The i MiEV will be sold in Japan later this summer. Mitsubishi said it “is examining several markets including the U.S. for the rollout of the electric vehicle.”