UPDATE 1-Sanyo to boost output of auto Lithium batteries-Nikkei

Dec 24 (BestGrowthStock) – Sanyo Electric Co (6764.T: ) plans to
raise its annual output capacity for automotive lithium-ion
batteries by 150 percent, by investing about 15 billion yen
(about $180 million) in a key plant, the Nikkei reported.

Sanyo’s production lines at the Kasai plant in Hyogyo
Prefecture, which will double to four in 2011, will produce
batteries with capacities of 20 ampere-hours or higher for use
in plug-in hybrids and electric vehicles, the daily said.

The company produces lithium-ion batteries for hybrid
vehicles made by the Volkswagen AG group (VOWG_p.DE: ), the
business daily said.

By boosting capacity, Sanyo aims to use the plant — among
the top in the world in production capacity for automotive
lithium-ion batteries — as its main supply base for three
automakers, Nikkei said.

Panasonic Corp (6752.T: ), which will turn Sanyo into a
wholly owned unit next spring, is positioning automotive
lithium-ion batteries as a pillar of its group operations, the
daily said.

At a combined share of 26 percent, Sanyo and Panasonic led
the global market for cellular phone lithium-ion batteries in
the July-September quarter, according to Tokyo firm Techno
Systems Research Co, the Nikkei said.

By expanding operations, the team is looking to be the
global leader in the field of automotive lithium-ion
batteries.
($1=83.55 Yen)
(Reporting by Amruta Sabnis in Bangalore; Editing by Joyjeet
Das)

UPDATE 1-Sanyo to boost output of auto Lithium batteries-Nikkei