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Toshiba to build $300 million battery plant-Nikkei
Tue Dec 23, 2008 2:57pm EST

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NEW YORK, Dec 23 (Reuters) - Toshiba Corp (6502.T) plans to spend up to 30 billion yen ($330 million) to build a lithium ion battery factory in Niigata Prefecture, northwest of Tokyo, boosting its production capacity for state-of-the-art batteries about 70-fold, the Nikkei financial daily reported.

The plant, which will make a new type of battery called the Super Charge ion Battery (SCiB), is slated to begin operating in late 2010, the Nikkei said without citing sources.

SCiBs can be charged faster than conventional lithium ion batteries and are less prone to catching fire.

The company aims to roll out 10 million units a month by 2015, with annual sales targeted at 200 billion yen ($2.2 billion), the Nikkei said.

Toshiba has said it wants to use the new battery, which it developed, in industrial applications such as forklifts.

It already produces about 150,000 SCiB units a month at another plant. Those batteries are mainly used in products such as motor-assisted bicycles.

Sanyo Electric Co Ltd (6764.T), which is being taken over by Panasonic Corp (6752.T), is the market leader in lithium ion batteries. Sony Corp (6758.T) has also announced plans to boost its presence in the sector. ($=90.68 yen) (Reporting by Ted Kerr; Editing by Maureen Bavdek)