Sanyo in talks to sell EV, motorbike batteries

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Japan's Sanyo Electric Co Ltd is in talks with two major automakers to supply lithium-ion batteries as it moves to secure growth beyond the era of gasoline-electric hybrid vehicles.

"Two car makers are looking into our lithium-ion batteries for electric vehicles," Sanyo Executive Vice President Mitsuru Homma told Reuters in an interview on Thursday.

Homma did not give the names of the automakers, or disclose which country they are from.

Customers for Sanyo's hybrid car-use batteries include Honda Motor Co, Ford Motor Co and PSA Peugeot Citroen, but the world's largest rechargeable battery maker has so far disclosed little about its electric car battery business.

Industry specialists say part of the demand for hot-selling hybrid vehicles, such as Toyota Motor Corp's Prius, will eventually move to zero-emission electric vehicles.

But developing batteries for electric vehicles (EV) is technologically challenging as EV batteries need to have substantially higher capacity than hybrid-use batteries without posing safety risks.

Homma also said Sanyo, the world's largest rechargeable battery maker, is also talking with Japanese and European motorcycle producers about supplying lithium-ion batteries for electric-powered motorbikes.

"I cannot tell you who they are since these would be their strategic products. But specific talks are under way not only with Japanese makers but with European makers as well," he said.

Homma did not identify the prospective buyers. Major Japanese motorcycle makers include Honda, Suzuki Motor Corp, Yamaha Motor Co Ltd and Kawasaki Heavy Industries Ltd.

Japanese electronics maker Panasonic Corp this month acquired a majority stake in Sanyo, creating a dominant player in the fast-growing market for "green" car batteries. Panasonic runs a joint venture with Toyota, the world's largest auto maker, to develop and make hybrid and EV batteries.

Sanyo also offers solar cells and Panasonic makes fuel cells, allowing the new Panasonic group to offer comprehensive power generation and power storage systems.

Homma said he hopes to supply hybrid- and electric car-use batteries to Suzuki, Japan's fourth-largest automaker, following the announcement earlier this month of a tie-up under which Volkswagen AG will take 19.9 percent of Suzuki.