Honda Motor says it will team up with GS Yuasa International to develop batteries for electric vehicles.
The auto manufacturer plans to set up a joint venture with the major Japanese battery maker by the end of this year.
Honda says the firms have reached a basic agreement on collaboration for the joint research and development of a lineup of high-capacity, high-output lithium-ion batteries.
Officials say the companies aim to develop a highly efficient production system. That includes setting up a supply chain for key materials.
Honda has already tied up with battery makers overseas to secure stable supplies for its car production in the US and China.
The latest plan is to ensure stable procurement of batteries for its EV manufacturing in Japan.