Nikkei Reporting that Sanyo Will Supply NiMH Batteries For Peugeot Diesel-Electric Hybrids

Here is a report from the Nikkei reporting on a deal between Sanyo and Peugot for NiMH batteries to be used in diesel-electric hybrid vehicles.

PSA Peugeot Citroen, a French player that aims to be the world’s first to bring a diesel-electric hybrid to market, is the fifth automaker that Sanyo is expected to supply batteries to.

Sanyo will ship batteries for several tens of thousands of cars per year. They will be used in the Peugeot 3008 sports utility vehicle and the Citroen DS5 luxury car, models the group plans to roll out in 2011. Both will use a diesel engine to power their front wheels and a motor to power their rear ones.

Sanyo supplies NiMH batteries to Honda and Ford and is expected to supply lithium ion batteries to the Volkswagen Group and Toyota Motor Corp.

One has to wonder why large format NiMH batteries cannot be manufactured for electric only vehicles. NiMH batteries such as those found in the Toyota RAV4 EV, which is still in use today.