UPDATE 1-Toyota to buy lithium ion batteries from Sanyo - Nikkei

Aug 19 (Reuters) - Toyota Motor Corp (7203.T) will procure batteries for hybrid vehicles from Sanyo Electric Co 6764.T, as its battery joint venture cannot keep up with demand, the Nikkei business daily reported.

The automaker will first use Sanyo batteries in a hybrid minivan slated to debut around 2011, the newspaper said without citing sources.

Performance evaluations for the lithium ion batteries have already been conducted and the companies will now make preparations for mass production, including installation, Nikkei said.

Sanyo is expected to supply batteries for about at least 10,000 vehicles a year, the paper said.

Currently, Toyota's sole supplier of nickel-metal hydride batteries is Panasonic EV Energy Co, its joint venture with Panasonic Corp (6752.T). (Reporting by Renju Jose in Bangalore; Editing by Maju Samuel)