Johnson Controls and Saft have signed a memorandum of understanding to form a joint venture for advanced technology batteries to accelerate their participation in the hybrid vehicle market. The joint venture will develop, manufacture and sell, on an exclusive basis, nickel metal hydride and lithium ion batteries for hybrid electric vehicles (HEVs) and electric vehicles globally. The companies expect the agreement to be finalized in early 2006 and will commence joint sales and marketing activities immediately. In September Johnson Controls launched an lithium-ion battery development laboratory in Milwaukee, to create power-storage solutions for hybrid-electric vehicles.