Hitachi enters hybrid battery venture

Partnership aims to tap lithium-ion batteries that allow for smaller, lighter products.

TOKYO (Reuters) - Japan's Hitachi Ltd., Hitachi Maxell Ltd. and Shin-Kobe Electric Machinery Co. Ltd. said Wednesday they had formed a joint venture to make rechargeable lithium-ion batteries for hybrid cars.

The venture, aimed at tapping into the growing market for hybrid vehicles and valued at ¥1.5 billion, or $13.86 million, is owned 43.7 percent by Shin-Kobe, 36.7 percent by Hitachi (HIT: Research, Estimates) and 19.6 percent by Hitachi Maxell.

Nickel metal-hydride batteries are currently used widely for hybrid cars, such as Toyota Motor Corp.'s Prius, but lithium-ion batteries have a higher energy density, making it possible to manufacture smaller and lighter products, said a spokesman at Hitachi, Japan's largest electronics conglomerate.

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Jeff