Tokyo  - Nissan Motor Co plans to start full production of lithium-ion batteries for automobiles by 2009 to meet the growing demand for electric vehicles and hybrid cars, the company said Monday.

The venture company Automotive Energy Supply Corporation (AESC), which is owned by Nissan, NEC Corporation and its subsidiary NEC TOKIN Corporation, will develop and produce advanced lithium-ion batteries with an annual output capacity of 13,000 units.

On a capital investment of 12 billion yen (114.6 million dollars) for the first three years, AESC plans to expand its annual production capacity to 65,000 units.

While Nissan plans to introduce electric cars to the United States and Japan in 2010, and to the rest of the world in 2012, it also plans to supply lithium-ion batteries to other automakers.

Nissan has not produced hybrid model car. The Altima gas-electric hybrid sedan marketed in the US market adopts the system from Toyota.

The advanced batteries AESC plans to produce would generate twice as much power as the existing lithium-ion or nickel metal hydride batteries. (dpa)