Sanyo Electric Co Ltd announced that it plans on boosting its capacity to make nickel-metal hydride batteries for use in hybrid vehicles. The Japanese company said that it plans to increase capacity by 75 percent to 3.5 million cells a month by March 2010 to meet increasing demand.

As demand for new gasoline-powered cars declines significantly, demand for Honda and Toyota hybrids have been a bright spot for their latest models.

Sanyo currently provides rechargeable nickel-metal hydride batteries for Honda and Ford hybrids.

- By: Mo Eladway

Source: Reuters