Sanyo to supply batteries for Peugeot hybrids

Wed Nov 4 2009, 09:30 AM

Japan’s Sanyo Electric is supplying batteries to PSA Peugeot Citroen for use in the French firm’s hybrid-electric vehicles. The nickel-metal hydride (NiMH) batteries will be used in the hybrid-electric versions of the Peugeot 3008 and Citroen DS5. PSA will roll out the vehicles in 2011 and Sanyo will reportedly provide enough batteries to support the annual production of several tens of thousands of cars.

Deal Details

In July, Sanyo announced plans to boost its NiMH battery production capacity by 250% this year. The firm has established deals to supply Honda and Ford, and is rumoured to be in talks with Toyota over a potential battery supply deal. Toyota plans to stick with NiMH batteries for the time being, after concluding lithium-ion batteries are too expensive despite offering improved fuel economy.

Last week, it was reported that Sanyo and Panasonic may reduce their share in the battery market in order to get approval for their pending merger.