GS Yuasa on Monday said it planned to issue new shares to raise up to JPY36.7bn (US$397m) to invest in lithium-ion battery development.

GS Yuasa, which plans to make hybrid car batteries with Honda Motor next year, plans to issue 40m shares in a public offering at the end of July.

It could also issue an additional 6m shares in an overallotment option, Reuters reported.