A joint battery venture between Toyota Motor Corp and Panasonic Corp has announced that it will manufacture lithium-ion batteries for hybrid cars at a plant in Western Japan from 2022 to meet the rising demand for electric vehicles (EV).

The production line at a Panasonic factory in Tokushima prefecture will have adequate capacity to build batteries for about 500,000 vehicles per annum, Prime Planet Energy & Solutions, Inc said in a declaration.

"The global electric vehicle market is expected to continue growing rapidly," the company believed.

Founded in April, Prime Planet Energy is 51 percent owned by Toyota Motor with Panasonic holding the enduring stake. The venture replicates the drive of both companies to become superior global players in an industry crucial for the development of affordable EVs.

Panasonic, one of the world's biggest EV battery makers, faces extreme competition as a battery supplier to global automakers, comprising Tesla Inc. The other prominent players are South Korean and Chinese makers such as Samsung SDI Co, LG Chem, and CATL.

In September, Toyota, Japan's biggest carmaker said that it anticipates yearly sales of EV vehicles to reach 5.5 million in 2025, five years earlier than primarily planned.

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