Panasonic Corp. will build a 2.7 billion yuan ($412 million) factory in the northeastern city of Dalian to produce lithium ion batteries for electric vehicles, reports the Nikkei Asian Review.

 

The plant is expected to launch production in 2017 and will supply enough battery packs for approximately 200,000 vehicles a year.

 

Panasonic is expected to form a joint venture with a Chinese company, although Nikkei did not identify the partner.

 

The project comes at a time when EV output in China is soaring. In the first 11 months of the year, production of EVs and plug-in hybrids quadrupled to 290,000, according to the China Association of Automobile Manufacturers.

 

According to Nikkei, Panasonic is the world's largest producer of lithium ion batteries for automotive use, with a global market share of 46 percent.

 

The battery maker has shifted its focus away from mobile phones, digital cameras and other consumer electronics in favor of EV batteries, which are more profitable.

 

In September, Panasonic shut a plant in Beijing that produced batteries for consumer goods.