Japan's Mitsubishi Motors Corp and French carmaker Peugeot Citroen will work together to develop and produce parts for plug-in hybrid vehicles, the Nikkei business daily said on Thursday.
The two, which are each developing their own plug-in hybrids, plan to cooperate on the development and production of engine components, and may also supply their hybrid vehicles to each other, the paper said, without citing sources.
Plug-in hybrids, which sip gasoline and are low in greenhouse gas emissions, have large batteries which can be recharged at home with an extension cord, unlike conventional gasoline-electric hybrid cars which have batteries that are powered only when the driver hits the brake.
Mitsubishi Motors will supply large-capacity lithium ion batteries to Peugeot through an affiliate, the paper said.
A Mitsubishi Motors spokeswoman said the company did not have anything to announce.
As part of a June 2008 agreement to tie up in electric vehicles, Mitsubishi is to begin supply of its i-MiEV electric car to Peugeot as early as next year, and the firms are also planning to jointly manufacture cars in Russia.
Mitsubishi has been developing a plug-in hybrid car for commercial release by 2013.
Toyota Motor Corp, which leads the hybrid market, is working to achieve the world's first mass-produced plug-in hybrid cars in 2012, the paper said.
