GS Yuasa, Mitsubishi Corp and Mitsubishi Motors to Establish New Company to Manufacture Lithium-ion Batteries.

Tokyo, Japan, May 8, 2007 - (JCN Newswire) - GS Yuasa Corporation (TSE: 6674), Mitsubishi Corporation  (TSE: 8058), and Mitsubishi Motors Corporation (TSE: 7211) have begun collaboration on establishing a joint venture company to manufacture large capacity and high performance Lithium-ion batteries that can be used in electric vehicles (EV). The three partners aim to complete the details and set up the new company sometime within half a year.

GS Yuasa is expected to own a 51% share of the new company, with MC and MMC owing 34% and 15% respectively. The new company's headquarters will be located within GS Yuasa's Kyoto head office. During the first stage of development, 3 billion yen will be invested to install automated mass production lines within GS Yuasa's Kyoto head office plant, capable of manufacturing 200,000 cells per year. Operations are slated to commence by 2009.

Application of Large Lithium-ion batteries is expected to increase dramatically across a wide variety of industries, including automobiles. Construction of systems that can quickly meet these market needs has become a vital issue. GS Yuasa possesses advanced technologies in Large Lithium-ion batteries and is striving to broaden their applications. Meanwhile, MC intends to enter the battery manufacturing business and aims to create other related businesses as well. MMC is working to increase the use of the "cleanest" possible vehicles i.e., EV. The three companies decided that by combining their unique strengths, they could exhibit optimum synergy through the establishment of this new company.

The batteries that will be produced by the new company are based on the "LIM series" of Large Lithium-ion batteries manufactured by GS Yuasa (currently the only mass producer of Large Lithium-ion batteries in Japan) and thanks to a review of the certain factors such as cell-structure and electrode materials, improve energy density and power density. These new batteries have ten times the capacity of those for hybrid electric vehicles, and are the perfect choice for EVs. MMC plans to install the batteries to its next generation EV "i MiEV" (i Mitsubishi innovative Electric Vehicle), which it aims to introduce to the market by 2010. The batteries can also be supplied to EVs manufactured by other auto-makers and to industrial applications for energy storage use.

Furthermore, the new batteries are characteristic of high-speed energy input and output which comply with high-speed charge specifications under consideration by electrical power companies and potentially with plug-in hybrid electric vehicles (P-HEV). We hope that our product will become the de facto standard for Large Lithium-ion batteries, and that new company shall increase production capacity and line-up of the products in response to the expanding market.

Overview of New JV Company

Name:                     Yet to be announced
Period of establishment:  Aim is within half a year
Location of headquarters
 and factory              1, Inobanba-cho, Nishinosho, Kisshoin,
                          Minami-ku, Kyoto, Japan
                          (at GS Yuasa's Kyoto Head Office)
Size of factory:          7000m2
Capital:                  Around 3 billion yen
Investors and percent
 ownership:               GS Yuasa 51%, MC 34%, MMC 15% (planned)
Type of business:         Manufacturing of Large capacity
                           Lithium-ion batteries
Production scale:         20,000 units / year in first fiscal year

About Mitsubishi Corporation

Mitsubishi Corporation (TSE: 8058)(UK: MBC)(US: MSBHY) is one of the world's most diverse enterprises, and Japan's largest sogo shosha, or trading company. Mitsubishi Corporation has decades of experience doing business around the world, experience that has made it more than just a leader in international trade. The company's extensive network and wide-ranging activities give it a decisive edge in gathering the timely, accurate market information vital to success. The company's seven business groups--New Business Initiative, IT & Electronics Business, Fuels, Metals, Machinery, Chemicals and Living Essentials--work closely with clients to develop new business opportunities. Project coordination, sourcing of raw materials, capital investments and development of sales channels are just a few of the ways Mitsubishi Corporation creates value for business partners, customers and shareholders.

About Mitsubishi Motors Corporation

Mitsubishi Motors Corporation (TSE: 7211) was established in 1970 and is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The company also operates consumer financing services and provides this to its customer base. For more information, please visit www.mitsubishi-motors.com .

Source: Mitsubishi Motors Corporation

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