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There will be headquarters established in both countries. The focus will be on producing clean energy, buildings and vehicles.
"President Obama and I are committed to transforming how we produce and use energy. We are also committed to working with China to seize the huge opportunities for cooperation on this issue between our two nations," says U.S. Secretary of Energy Stephen Chu.
The U.S. research center's location hasn't been determined, but the Bay Area is considered a possible site, since it's already home to some of the brightest minds in clean energy.
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