GS Yuasa is in talks to supply overseas automakers with electric car lithium ion batteries and its venture with Mitsubishi Motors may begin sales next year.

The auto battery maker aims to boost annual lithium ion battery sales more than 30 times to JPY100bn (US$1.1bn) by March 2016, company president Makoto Yoda said.

The company is banking on strong growth for petrol-electric hybrid and pure electric vehicles amid concerns about climate change and as government subsidies offer consumers subsidies.

"Demand for electric vehicles is particularly strong in the United States and Europe as they have stringent regulations against carbon dioxide emissions," Yoda told Reuters.