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OSAKA, Japan – A mega merger has joined two of the biggest producers of lithium-ion batteries widely used in e-Bikes. The world’s biggest maker of such batteries will arise from the merger of Japan’s Panasonic and Sanyo Electric.

Following an earlier announcement on the upcoming take-over Panasonic has recently bought a majority share of just over 50% in Sanyo Electric. Panasonic paid some JPY 403.8 billion (€ 3.1bn) for the acquisition of its long time competitor.

Both companies are important manufacturers as well as investors in lithium-ion batteries for e-Bikes. It is speculated that the economy of scale effect in Li-ion battery production that results from the Panasonic – Sanyo merger could lead to lower prices for such batteries.

Lower prices for the high tech Li-ion batteries, which provide a wider range and an extended lifecycle, will give an extra push for this growth segment in the world’s biggest bike markets.

Also, as both companies have invested substantially in the technology of lithium-ion batteries, the shared know-how could speed-up further battery developments.

The acquisition by Panasonic has been delayed for months due to a survey by Japan’s competition bureau. Sanyo Electric has had financial troubles for some years and had to lay off thousands of employees during this period. But also Panasonic is currently reorganizing by closing numerous factories and by cutting 15,000 jobs.