Honda Motor and GS Yuasa will form a joint venture on 1 April to develop and lithium-ion batteries for hybrid vehicles.

Blue Energy will be in Kyoto Prefecture and owned 51% by GS Yuasa Power Supply , a wholly owned subsidiary of the Kyoto-based battery maker, with the remainder held by Honda, the two firms said.

The joint venture will initially be capitalised at JPY3bn, rising to JPY15b later and its president will be Masahiko Oshitani, executive officer of GS Yuasa .