GM taps Hitachi Li-ion batteries for hybrid cars

Hitachi Ltd has received an order for Li-ion battery systems for hybrid-electric vehicles (HEV) from General Motors Corp.

The batteries will be supplied by Hitachi subsidiary Hitachi Vehicle Energy Ltd, will be installed annually in more than 100,000 HEVs scheduled for launch in North America in 2010.

Owing to stricter environmental regulations and rising concern about fuel economy worldwide, Hitachi expects the global market for HEVs to continue expanding from the 410,000 unit level recorded in 2006 to 1.5 million units in 2010. Hitachi estimates that demand for HEV Li-ion batteries will overtake current mainstream NiHM batteries in 2015.

In January, Hitachi infused additional capital into Hitachi Vehicle Energy, a joint venture company among Hitachi Ltd, Shin-Kobe Electric Machinery Co. Ltd and Hitachi Maxell Ltd, to boost it the company's production capacity and product development capability.