Nov. 1 (Bloomberg) -- Sanyo Electric Co. has reached an agreement to supply nickel-metal hydride batteries to PSA Peugeot Citroen Group from 2011, Nikkei English News reported, without saying where it got the information.

The French company will use the batteries in its diesel- electric hybrid cars, the report said. Sanyo will ship batteries for several tens of thousands of cars per year, it said.

Sanyo Electric already supplies batteries for Honda Motor Co.’s Insight hybrid and Ford Motor Co.’s hybrids, and is expected to supply lithium-ion batteries to the Volkswagen Group and Toyota Motor Corp, the business daily said.

To contact the reporters on this story: Yasuhiko Seki in Tokyo at yseki5@bloomberg.net

Last Updated: October 31, 2009 20:36 EDT