Sanyo, which makes rechargeable batteries, said it has reached an agreement with DaimlerChrysler AG to develop batteries for gasoline electric hybrid cars, according to the Detroit News on October 17. Osaka, Japan-based Sanyo, which makes battery systems for DaimlerChrysler's fuel cell-powered car, did not disclose development costs for the battery in its statement on the agreement. Hybrid vehicles, which have an electric motor and a gasoline engine that assists the vehicle in acceleration and to recharge the battery, are being sold as a clean and fuel-efficient alternative amid rising oil prices. A push for cleaner air will trigger a tenfold increase in global sales of hybrid batteries to about 337 billion yen ($3.1 billion) by the end of the decade, Sanyo said.

Originally posted on Fleet Financials