Volkswagen, Sanyo to develop lithium-ion battery

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Volkswagen AG will join forces with Sanyo Electric to develop a lithium-ion battery, a key component of hybrid and electric cars. The German automaker hopes to start importing the battery for use by 2012, the Nikkei newspaper reported Sunday, citing company sources.

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By working with Sanyo, Volkswagen hopes to catch up with rivals in eco-friendly vehicles, the newspaper said.

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Lithium-ion batteries are widely used in personal computers and mobile phones, and Sanyo has the largest global market share for them.

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Toyota, which has enjoyed enormous successes with Prius hybrid model, has worked with Matsushita Electric Industrial, known for its Panasonic brand, to start mass-production of a lithium-ion battery for use in Toyota’s hybrid models by 2010, the Nikkei said.

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Nissan Motor Co and Japanese electronics giant NEC Corp have also agreed to start mass-producing a lithium-ion battery for a more eco-friendly vehicle than is possible with nickel-hydrogen batteries, which are used widely in vehicles now, the Nikkei said.

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The lithium-ion battery that Sanyo and Volkswagen will develop will be smaller than a nickel-hydrogen battery, making it possible to design lighter cars than those using conventional batteries, the Nikkei said.

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Sanyo is going through a restructuring and believes its battery business is key to its turnaround.

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Sanyo is currently manufacturing nickel-hydrogen batteries that can be recharged repeatedly and supplying them to Honda Motor Co and Ford Motor Co.

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Volkswagen and subsidiary Audi AG will also adopt Sanyo-made nickel-hydrogen batteries for use in the Volkswagen group’s first hybrid model, to be rolled out as early as next year, the Nikkei said.

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