Sanyo Electric has agreed a deal with Volkswagen to co-develop next generation nickel metal hydride (Ni-MH) battery systems for hybrid electric vehicles (HEVs).


Sanyo has already provided HEV batteries for Ford’s Escape Hybrid and Honda’s Accord Hybrid on the North American market.


Its next generation Ni-MH batteries aim to meet automaker needs for higher output power and higher durability through advanced battery system technologies, such as battery electronic control units (ECU) and technology that reduces size and weight.


This is Sanyo’s first HEV battery systems supply deal with a European automomaker.


Sanyo told Financial Times Deutschland that the agreement is a step in its plan to achieve a 50% share of the worldwide market for hybrid batteries.

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