Nissan is planning luxury hybrid model for sale in Japan and the US.

A lithium-ion battery would be used in the Fuga sedan, known as the Infinity M in the US, the Nikkei business daily said at the weekend in an unsouced report, according to Agence France-Presse (AFP).

Sales of the new hybrids would start in fiscal year 2010/11, the paper said.

Nissan has already announced plans to make electric vehicles from 2010. It currently sells a hybrid Altima in the US but that car uses Toyota’s technology.

Toyota and Honda use nickel-metal hydride batteries for their hybrids but Nissan will use lithium-ion batteries, the Nikkei said.