OSAKA, Nov. 1, 2009 (Kyodo News International) -- Sanyo Electric Co. (OOTC:SANYY) plans to supply batteries for the PSA Peugeot Citroen group's diesel-electric hybrid cars, making the French automaker its fifth client in the business, sources close to the matter said Sunday.

Sanyo has been aggressively expanding the vehicle battery business with a policy of not tying up with specific automakers.

The Osaka-based company has already been supplying batteries to Honda Motor Co. (NYSE:HMC) , Ford Motor Co. (NYSE:F PRS) (NYSE:F PRA) (NYSE:F) and Volkswagen AG, and reportedly plans to supply Toyota Motor Corp. (NYSE:TM) as well.

Under the deal with the Peugeot group, Sanyo will provide nickel-metal hybrid cells for Peugeot's two hybrid models which the French carmaker plans to launch in 2011.

Sanyo will manufacture the batteries at its plant in Sumoto, Hyogo Prefecture, and assemble them at a plant in Kasai in the same prefecture according to specifications that the two companies will develop jointly, the sources said.