July 24 (Bloomberg) -- Toray Industries Inc., Nissan Motor Co. and Honda Motor Co. will collaborate on developing a carbon- fiber material to cut the weight of vehicles by as much as 40 percent, Nikkei English News reported, without citing anyone.

The partnership between Toray, the world's biggest maker of carbon fiber, and the Japanese automakers will work on creating a mass-production technique for the new material by the middle of the next decade, Nikkei said.

Japan's Ministry of Economy, Trade and Industry will give 2 billion yen ($18.5 million) over five years to the venture, whose participants also include textile makers Mitsubishi Rayon Co. and Toyobo Co., plastic parts producer Takagi Seiko Corp. and the University of Tokyo, Nikkei said.

To contact the reporter on this story: Nancy Moran in New York at nmoran@bloomberg.net.

Last Updated: July 23, 2008 14:10 EDT