German car giant Volkswagen AG has called in electronics company Sanyo to help it construct the batteries for its next generation hybrid cars.
Car manufacturers everywhere are racing to come up with ecologically sound cars, and hybrids like Toyota Prius have proved popular on the global market.
Volkswagen are expected to mount lithium-ion batteries on their luxury Audi AG in 2010, and they have called in experts Sanyo to produce the cells.
"Our focus in future will be directed more strongly at making electrically powered automobiles alongside ones driven by more efficient combustion engines," said Volkswagen Group CEO Martin Winterkorn.
"This cooperation is an important step for us."
Sanyo are expected to begin manufacturing the batteries in a new plant in western Japan