Automotive giants Robert Bosch has agreed to work on automotive lithium ion battery development with Mitsubishi and Japanese battery maker GS Yuasa.

The companies intend to set up a joint venture to conduct research and development and provide sales and marketing support to the three parent companies, Bosch said in a statement this week. The batteries will be used for vehicles such as plug-in hybrids or electric cars.

Bosch will hold a 50 percent share in the joint venture, and GS Yuasa and Mitsubishi each will hold 25 percent. The venture will be based in the German supplier's hometown of Stuttgart and operations will commence early next year.