Panasonic already works with Tesla on batteries for the latter’s electric vehicles and it appears that the company might soon work on similar products with Japanese auto behemoth Toyota. According to reports, Toyota and Panasonic will launch a joint venture to manufacture batteries for electric vehicles.

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According to the Nikkei, the two companies are going to set up this joint venture at some point next year. They are reportedly focused on lowering the cost of these batteries by relying on economies of scale. The batteries that they make won’t just be limited to Toyota. They will reportedly supply Toyota’s Daihatsu brand in addition to other companies like Subaru and Mazda. They’re looking to win Honda as a client as well.

The report further adds that Toyota will have a controlling 51 percent stake in this joint venture. Panasonic would bring five of its production plants for car batteries in China and Japan to this joint venture. This deal will not affect Panasonic’s existing relationship with Tesla.

No official confirmation about this joint venture has come from either company but the report mentions that they may make an official announcement “as soon as this week.” This deal with Toyota will enable Panasonic to gain an even more dominating position in the market that it has already been able to courtesy of its Tesla deal.

Filed in General. Read more about and . Source: asia.nikkei

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