Hitachi Limited in Japan is set to spend an estimated Y20-30billion to boost production capacity for lithium-ion batteries as it targets a 70-fold increase in production capacity by 2015.

The report in the Nikkei suggests that the company will raise capacity by 600 per cent next autumn on the back of receiving enough orders of lithium-ion batteries for 100,000 hybrid cars from General Motors Corporation.

In an effort to win orders from domestic and overseas car makers, the company will now bolster its capacity as each vehicle is typically equipped with 30-50 lithium-ion batteries.

It will also mass produce two new types of lithium-ion batteries for use in the next generation hybrid cars that are half the weight and size of conventional nickel-metal hydride offerings and make significant improvements to output density. 

General Motors has contracted Hitachi to provide the cells for its second generation belt alternator starter mild hybrid system.