GS Yuasa Corporation, Mitsubishi Corporation and Magna International Inc. will jointly manufacture lithium-ion batteries for EVs. The factory will be built in either Spain or Austria.

GS Yuasa Corp. Mitsubishi Corp. and No. 1 North American autoparts manufacturer Magna International Inc. are planning joint European production of lithium ion batteries for electric vehicles.

Negotiations are under way to set up a joint venture as early as this year, with GS Yuasa seen taking a majority stake. Magna will likely have a stake of 20-40% and Mitsubishi the rest.

Costing 40 billion yen or so, their factory will likely be one of the largest electric-vehicle lithium ion battery plants in Europe and is to be built in Spain or Austria. Construction will likely begin early next year, with the plant operational as early as 2012. Output capacity is to be hiked gradually to roughly 50,000 vehicles. The trio could also build a similar plant in North America.

The lithium ion batteries will likely be used for a new electric vehicle that French firm PSA Peugeot Citroen Group plans to produce in Spain. The three companies also aim to provide them to such Magna customers as Ford Motor Co. and German firm BMW AG.

As part of a joint venture with Mitsubishi and Mitsubishi Motors Corp, GS Yuasa has been making lithium ion batteries in Kusatsu, Shiga Prefecture, since last year for Mitsubishi Motors' i-MiEV electric car. Mitsubishi Motors will not participate in the European joint venture.