China's Ministry of Commerce said on Wednesday it has conditionally approved the formation of a joint venture (JV) which will be focused on the production of nickel-metal hydride batteries for hybrid cars.

The venture, expected to be named Corun PEVE (China) Automotive Battery Co, would be jointly owned by Hunan Corun New Energy Co, Changshu Sinogy Venture Capital Co, Primearth EV Energy Co - a joint venture between Toyota and Panasonic Corp, and two other Toyota units as well.

A conditional approval was announced by the ministry in a statement on its website, which said the joint venture may restrict or exclude competition in both the Chinese and the global marketplace for nickel-metal hydride batteries.