UPDATE 1-Toshiba, M’bishi Motors in lithium battery deal -Nikkei

July 2 (BestGrowthStock) – Toshiba Corp (6502.T: ) will supply
lithium-ion batteries for an electric vehicle that Mitsubishi
Motors Corp (7211.T: ) plans to launch in the near future, The
Nikkei reported.

French automaker PSA Peugeot Citroen Group, who will
jointly develop the vehicle with Mitsubishi, is also expected
to procure batteries from Toshiba through the Japanese
automaker, the business daily said.

Mitsubishi will launch the new electric vehicle, designed
for short-distance travel, by fiscal 2012 for less than 2
million yen, the daily added.

Batteries now make up more than half the production costs
of electric vehicles, the paper said.

Competition among Japanese electrical machinery
manufacturers is heating up in parts for electric and hybrid
vehicles, with Sanyo Electric Co (6764.T: ), Panasonic, NEC Corp
(6701.T> and Hitachi Ltd (6501.T: ) stepping up efforts to secure
contracts, Nikkei said.

Toshiba is now building a 25 billion yen lithium-ion
battery plant in Kashiwazaki, Niigata Prefecture, slated to
begin operations next spring, the Nikkei said. The firm is in
final stage of talks with German automaker Volkswagen AG to
supply batteries, it added. “It also plans to build a U.S.
plant to supply electric-vehicle motors to Ford Motor Co
(F.N: ),” the paper added.
(Reporting by Mansi Dutta in Bangalore; Editing by Vyas
Mohan)

UPDATE 1-Toshiba, M’bishi Motors in lithium battery deal -Nikkei