Toyota says to build another battery plant for hybrid vehicles

Tag: Lead Battery

Toyota Motor Corp. said Tuesday it will build another factory that will make batteries for hybrid vehicles, seeking to keep its lead in fuel-efficient cars amid growing competition with rivals.

Toyota (nyse: TM - news - people )'s joint venture with its partner Matsushita Electric Industrial Co. (nyse: MC - news - people ) will spend about 30 billion yen ($290 million) to build a plant in Taiwa, Miyagi Prefecture, north of Tokyo, a company statement said.

The move comes just days after the companies said they would spend 20 billion yen to build a new battery plant in Kosai in central Shizuoka Prefecture.

Toyota has taken a lead in sales of hybrids, which are equipped with an electric motor and a standard petrol engine, making them more economical and environmentally friendly than conventional vehicles.

The automaker has sold more than 1 million Prius cars -- the world's first mass-produced hybrid -- since the launch about a decade ago.

But it is facing renewed competition from other Japanese automakers such as Honda Motor Co. (nyse: HMC - news - people ) as well as overseas rivals in the green automobile race.