Nissan, NEC pact

NISSAN Motor Co and electronics giant NEC have formed a joint-venture company that will produce lithium-ion batteries for "wide-scale automotive application" in vehicles using electric power by 2009 – including a Nissan hybrid car due for release in 2010.

Known as the Automotive Energy Supply Corporation (AESC), the independent company will begin work this month.

After a year, the partnership between Nissan and NEC will be expanded to include widespread production and sales – the aim being to become the "leading company in the mass production of lithium-ion batteries for the global automotive community".

Most existing electric and petrol-electric hybrid vehicles use nickel-metal hydride batteries.

"Nissan will introduce our own original hybrid vehicle by 2010, followed by our next-generation electric vehicle in the early part of the next decade," said Nissan executive vice-president Carlos Tavares.