Buzz: Sanyo sets up Li-ion battery plant in Hyogo

Sanyo Electric Co. will build a factory to manufacture rechargeable Li-ion batteries in Minamiawaji, Hyogo Prefecture in Japan, according to a report from The Japan Times. Construction will start later this month.

Citing unnamed sources, the report said the factory will start production by midyear. This will enable the company to increase monthly production capacity of Li-ion batteries by 20 percent to 30 percent from the current 70 million units.

Sanyo also is building another plant in Kaizuka, Osaka Prefecture, which will also contribute to the overall capacity increase, according to the report.

Sanyo will invest a capital of $1.16 billion (125 billion yen) over the next three years for the project.