Nissan, NEC Push Advanced Auto Batteries

Nissan Motor and NEC Corp. have agreed to form an alliance in next-generation lithium-ion batteries for gas-electric hybrid and fuel-cell cars, reports the Nikkei Weekly. The move is aimed at putting Nissan on the hybrid car map, where it has fallen behind Toyota Motor Corp. and Honda Motor Co.

The partners have established a 50-50 joint venture to mass-produce and commercialize batteries by 2009. The new company will tackle the development of next-generation lithium-ion batteries, which have a lower weight than the nickel-metal hydride batteries currently used in hybrid-electric vehicles.

The total capitalization will reach 490 million yen, with Nissan contributing 50%, NEC 42.5% and electronics subsidiary NEC Tokin Corp. the remainder. The new firm, Automotive Energy Supply Corp., is developing mass-production technology and launching sales activities targeting other automakers.