The Ministry of Commerce has given conditional approval for a joint venture that plans to mass-produce nickel-metal hybrid batteries for electric vehicles.

The company, to be named Corun PEVE (China) Automotive Battery Co, is co-owned by five Japanese and Chinese enterprises that have deep roots and substantial market share in the hybrid battery market.

The conditional approval was announced by the ministry in a statement on its website on Wednesday, saying the venture may restrict or exclude competition in both the Chinese and the global marketplace for nickel-metal hybrid batteries.