Hitachi to sell batteries to GM

Hitachi has announced that it will be providing lithium-ion batteries that power hybrid cars to General Motors from next year.

The electronics company also said it planned to increase its production of the batteries from 40,000 cells a month to three million a month.

Hitachi's rivals have also been raising battery production for hybrid cars.

Toyota said last month that it planned to use lithium-ion batteries for the first time in its plug-in hybrids.

Its hybrids currently use nickel-metal hydride batteries.

Hitachi shares closed up 3% at 307 yen.

Batteries for hybrid cars are among the products it is relying on to return to profitability.

Last month, it reported a net loss of 787.3bn yen ($8.1bn; £5.3bn), which was the record annual loss for a Japanese manufacturer.

It also warned that the next year would continue to be difficult and forecast a loss of 270bn yen.

In January, Hitachi said it planned to cut up to 7,000 jobs because of a big fall in sales.

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