Toyota Motor Corp will buy batteries for hybrid cars from Sanyo Electric Co to keep pace with growing demand for cleaner vehicles, a source familiar with the matter said on Wednesday.
Toyota, the world's biggest automaker by sales, will first use Sanyo's batteries from around 2011, said the source, who spoke on condition of anonymity because the information is not yet public.
The maker of the popular Prius hybrid will first procure about 10,000 battery units per year from Sanyo, the world's biggest rechargeable battery maker, the source said.
Demand for gasoline-electric vehicles has surged in Japan, helped by tax breaks and subsidies under a government initiative to promote fuel-efficient automobiles, with the Prius ranking as the country's best-selling car in July for a second straight month.
But customers placing orders for the Prius have to wait months before delivery due partly to a shortage of batteries.
Toyota now procures its nickel-metal hydride batteries from Panasonic EV Energy Co, a joint venture with Panasonic Corp. Panasonic plans to take control of Sanyo, and is awaiting regulatory approval.
Panasonic EV Energy has said it plans to double production capacity to around 1 million units a year by the middle of 2010.
Toyota told its suppliers the previous day that it planned to raise its global production target for 2009 to 5.95 million units, up from 5.8 million, the Nikkei business daily also said.
The carmaker has already conducted performance evaluations for Sanyo's lithium ion batteries, the paper said.
Toyota spokesmen said they were checking on the news. A Sanyo spokesman declined comment, citing company policy on deals with potential and existing customers.
