Sanyo to supply NiMH batteries for Peugeot Diesel Electric Hybrid

Sanyo Electric has agreed with PSA Peugeot Citroen to supply nickel-metal hydride batteries for the French carmaker's diesel-electric hybrid cars, the Nikkei business daily said on Sunday.

PSA Peugeot Citroen, which aims to be the world's first to bring a diesel-electric hybrid to market, is the fifth automaker to which Sanyo is expected to supply batteries.

Battery makers have drawn investor attention as batteries look set to become a core component in electrified cars, including plug-in hybrids and pure electric vehicles, amid the global push for green energy.

Starting 2011, Sanyo, the world's top rechargeable battery maker, will supply batteries that will be used in the Peugeot 3008 sports utility vehicle and the Citroen DS5 luxury car, models the French company plans to roll out that year, the Nikkei said.

Sanyo plans to ship batteries for several tens of thousands of cars per year, the paper said.

No one at Sanyo was available to comment on the report. Sanyo supplies nickel-metal hydride batteries for Honda's Insight hybrid and Ford's hybrids, and is expected to supply lithium ion batteries to the Volkswagen Group and Toyota Motor Corp.

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