Talks are ongoing between car parts supplier Magna International Inc. and Mitsubishi Motors Corp. to build a joint battery plant for electric cars, according to Austrian Business daily WirtschaftsBlatt.
It is anticipated that Magna will enter a deal with Mitsubishi in the next two weeks. At that point, the two companies are expected to already have made a decision on the location of the factory.
The newspaper didn't name its source. When asked to comment, a spokesman at Magna's European headquarters in Oberwaltersdorf, referred to this report as "rumors."
He said that Magna is still in the process of negotiating with potential partners for its electric vehicle program but he declined to say when the future plans will be announced.
Last May, Magna co-CEO Siegfried Wolf said that the group is seeking two locations in Europe and the US to make e-car batteries. This is expected to be a fast growing business as carmakers have been trying alternative power options.
Earlier this year, Magna began a new business that will concentrate exclusively on electric cars and make complete vehicles and battery units.
This business is certainly a timely one as the battery is still the most expensive and technologically challenging aspect of electric cars.