The Nikkei business daily has reported that Mitsubhishi Motors Corp will tie up with France’s PSA Peugeot Citroen in the production of electric vehicles, supplying technology and next-generation batteries.

Mitsubishi Motors is planning to commercialise a pure electric vehicle by 2010.

Mitsubhishi will supply Peugeot with technology relating to the conversion of electricity into drive power and the prevention of batteries from overheating. It will also supply lithium-ion batteries, which can store more energy in smaller packages and are seen as crucial for extending the cruising distance of purely electric vehicles.

The two automakers may also look at forming a joint venture to build electric vehicles.