Li Auto Inc. (NASDAQ:LI) shares are trading higher in the premarket session on Wednesday.

Beijing Li Auto Insurance Brokerage Company, a unit of Li Auto, has entered into a business cooperation pact with SunCar Technology Group Inc. (NASDAQ:SDA) through its wholly-owned subsidiary, Shanghai Chengle Network Technology Co., Ltd.

Under the pact, SunCar and Li Auto Insurance are set to collaborate on developing 'Li Auto Insurance's Broker System.'

This collaboration aims to create an advanced information technology system for insurance brokerage, marking a major step forward in technological advancement and operational efficiency in the insurance industry, according to a press release.

The project is slated for completion by November 15, 2024. SunCar will oversee the design and development stages, delivering a customized software solution for Li Auto Insurance.

Following development, SunCar will offer six months of operational support and lifelong maintenance and technical assistance for the system.

"We are confident that Li Auto Insurance's Broker System will deliver exceptional value to Li Auto Insurance with operational excellence and set a benchmark for technology-driven solutions in insurance brokerage," said Ye Zaichang, Chairman and CEO of SunCar.

Price Action: LI Shares are trading higher by 4.18% to $33.15 premarket on the last check Wednesday.