The two sides expectto establish a new company for this purpose in June.

Hydro-Québec willbring to the partnership its operation and control technologies for electricpower supplies as well as lithium-ion battery material technology.

Sony will bring controltechnologies for highly safe, reliable, olivine-type lithium-ion iron phosphaterechargeable batteries and highly scalable module systems.

By combining thesestrengths, the new company intends to research and develop a highly safe andreliable system for utility-scale applications, as well as battery materialtechnology suitable for use within electric power systems.

They