TOKYO (Reuters) -Japanese automaker Mazda Motor (OTC:MZDAY) and the energy unit of Panasonic (OTC:PCRFY) Holdings will start talks to set up a battery supply partnership for electric vehicles (EVs), the companies said on Wednesday.<\/p>\n\n\n\n
Such an effort on lithium-ion batteries is likely to carry Mazda a step closer to ramping up production of EVs, in a 1.5-trillion-yen ($10.6-billion) spending plan it unveiled in November to drive electrification of vehicles.<\/p>\n\n\n\n
In the partnership, Panasonic Energy would supply Mazda with automotive cylindrical lithium-ion batteries made in Japan and North America for Mazda EVs expected to be rolled out in the latter half of this decade, the companies said in a statement.<\/p>\n\n\n\n
A Mazda spokesperson declined to say exactly what battery cells the Hiroshima-based automaker was planning to use in its EVs, adding that it would hold talks with an eye to secure supply from 2025-2027 onwards or later.<\/p>\n\n\n\n
Mazda has identified those years as the second phase of a three-phase plan, saying in November it would introduce battery EV models in the latter half of that period.<\/p>\n\n\n\n
The companies said their talks will focus on a partnership for the medium to long term.<\/p>\n\n\n\n
In 2012, Mazda used 1865 battery cells supplied by Panasonic in its Demio EV in Japan, leasing out 100 units of the subcompact as a trial for boosting knowledge about electrification, the spokesperson said.<\/p>\n\n\n\n
Japanese automakers are gearing up to compete for a bigger share of the global EV market.<\/p>\n\n\n\n
The world’s top-selling automaker Toyota, which owns a stake of 5.1% in Mazda, unveiled a sweeping plan last week to adopt solid-state batteries and other technologies to improve the driving range and cut costs of future EVs.<\/p>\n\n\n\n
Japan said on Friday it would boost support for domestic battery production to up to $2.2 billion, pledging support to Toyota and other makers in a push for greater economic supply chain security.<\/p>\n\n\n\n
($1=142.0800 yen)<\/p>\n