Honda Motor Co. and GS Yuasa Corp. have agreed to create a joint venture for the production of lithium-ion batteries for applications with a central focus on hybrid-electric vehicles. The new company, which the two partners hope to officially establish by spring 2009 with a capitalization of about ¥15 billion, will also conduct research into Li-ion technology. The factory would be located on grounds currently owned by GS Yuasa in Fukuchiyama, Kyoto. GS Yuasa, which was established in 2004 and currently makes Li-ion batteries for other applications, would be the majority shareholder with a 51% stake to Honda's 49%. The name of the joint venture will be announced later.