The two firms hope to use the system for some small electric cars that will be launched by fiscal 2012 and new plug-in hybrids introduced in 2013, the paper said.
An LG Chem spokesman declined to comment.
The development may lead to the first case of a Japanese automaker incorporating lithium-ion batteries made overseas, the daily added.
LG Chem, South Korea's No.1 chemicals company, has already teamed up with home market giant Hyundai Motor Co (005380.KS), General Motors [GM.UL] and Ford Motor Co (F.N) of the United States on auto batteries.
Reporting by Ju-min Park; Additional reporting by Kiyoshi Takenaka in TOKYO