Sanyo Boost Hybrid Battery Production

The growing demand for hybrid cars does not only help automakers across the globe who are seeking a more efficient way to return to profitability, but also battery manufacturers who finally see their products a must have in the current economic environment. Sanyo is one of the producers which are benefiting the most of the robust demand for hybrids so the company announced it will boost battery production by March 2010.

More importantly is actually by how much Sanyo will raise production, with a report by Reuters indicating the nickel-metal hydride batteries output will grow by no less than 75 percent, to 3.5 million units.

Sanyo executive vice president Mitsuru Homma revealed the plan in a meeting with the company's shareholders but hasn't mentioned how much money he would need for this particular task. Sanyo is currently the world's largest manufacturer of rechargeable batteries and works with several companies, including Honda and Ford.

However, some people are still not sure that directing efforts towards electric and hybrid cars could be the key to success. For instance, Holden's energy and environment director, Richard Marshall, says electric cars have no chance to replace combustion engines in the short to medium term.

"It took almost 100 years for shipping transport to move from sail to steam power," he said.

"It won't take 100 years for electric vehicles but it will take several decades until the market is dominated by electric vehicles. If people are thinking it's going to be like mobile phones, where they went from incredibly expensive status symbols to relatively affordable, commonplace items in a very short time period, then they're wrong."