BMW said on Wednesday the two companies aimed to advance research for carbon fiber recycling and know-how about manufacturing and automation.

The deal intensifies competition between BMW and rival Volkswagen (VOWG_p.DE), which already has a collaboration deal with Boeing through its Italian sportscar unit Lamborghini.

Last year, BMW moved to extend its influence over carbon fiber manufacturer SGL Carbon (SGCG.DE) after VW accumulated a stake in the company. BMW and SGL jointly built a new carbon fiber plant in Moses Lake, Washington.

Carbon fiber is 30 percent lighter than aluminum and 50 percent lighter than steel, a crucial advantage to help cut vehicle weight and carbon dioxide emissions.

Boeing's 787 Dreamliner is 50 percent made of carbon fiber material, and BMW plans to start selling vehicles with a carbon passenger cell late next year.

(Reporting By Edward Taylor; Editing by Dan Lalor)

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