Sanyo, VW Team Up To Produce Li-Ion Batteries

Sanyo Electric and Volkswagen will jointly develop a lithium-ion battery for use in hybrid and electric cars, with the goal of having a product ready for market by 2012. The joint venture is part of Volkswagen's plan to regain ground it has lost in the development of lower-emission vehicles. Other automakers have teamed with electronics companies to produce batteries for their cars including Toyota and Matsushita Electric Industrial, and Nissan and NEC.

Sanyo currently supplies nickel-hydrogen batteries to Honda and Ford. Audi will use Sanyo's nickel-hydrogen battery in its first hybrid model, expected in the showrooms in 2009 or 2010.