Shares in Panasonic climbed on Wednesday ahead of a press conference at which the Japanese electronics company announced a tie-in with carmaker Toyota about batteries used in its electric vehicles.
Toyota and Panasonic jointly announced an agreement to begin studying the feasibility of a joint automotive prismatic battery business.
The agreement, the two companies said, aimed to find solutions to issues such as global warming, air pollution and declining natural resources that are driving consumer demand for electric vehicles.
"Toyota and Panasonic target further advancements in automotive batteries, which are crucial technologies in electrified vehicles," the statement said.
"Both companies have realised the importance of collaborating with trusted partners and looking past conventional boundaries to contribute to the world through monozukuri (craftmanship) and creating new value."
Major battery supplier
Panasonic currently produces lithium-ion batteries for Toyota's Prius and other models, also other vehicle producers and is a major supplier to US electric carmaker Tesla.
In the summer, Toyota agreed to a collaborative effort with rival Mazda and car parts supplier Denso to set up a production facility in the US for the further development of core technologies in the manufacture of electric vehicles.
Panasonic has invested heavily in its automotive division and now considers the production of lithium-ion batteries as one of its key businesses.
The statement concluded: "Toyota and Panasonic recognise the importance that further advancements in battery performance, price and safety, as well as a stable supply capacity, will have on encouraging further popularisation of electrified vehicles."
Shares in Panasonic closed 1.19% higher on the Tokyo Stock Exchange at Y1,637.80, while Toyota Motor added 0.51% to Y7,075.