JV to work on Li-ion batteries for hybrid cars

GS Yuasa Corp. and Honda Motor Co. Ltd have reached a basic agreement to establish a joint venture company that will manufacture, sell and conduct R&D for high-performance Li-ion batteries for applications focusing on hybrid vehicles. Both companies will begin concrete discussions to establish the new company in 2009.

It is planned that the ratio of capital investment will be 51 percent by GS Yuasa and 49 percent by Honda. The headquarters of the new company is planned to be located in Minami-ku, Kyoto, and the factory is planned to be established within the property of GS Yuasa's Osadano operation in Fukuchiyama, Kyoto.

Environment-friendly technology
Hybrid vehicles are expected to move into the mass market stage as an effective environmentally responsible technology from the standpoint of reducing CO₂ emissions. The Li-ion battery offers energy density and power density higher than the NiMH battery, and demand for Li-ion batteries is therefore expected to grow as the battery of choice for hybrid vehicles.

GS Yuasa and Honda determined that development of smaller and lighter Li-ion batteries with improved performance should be achieved by combining the companies' strengths and know-how in manufacturing, sales and R&D of Li-ion batteries. The new company will manufacture batteries based on EH6, the Li-ion battery developed by GS Yuasa.