Asahi Kasei will team up with Nissan Motor and Omron to develop an inexpensive power storage system made by recycled electric-vehicle batteries, the Nikkei business daily reported.

The firm will recycle used batteries acquired from 4R Energy, a joint venture between Nissan and Sumitomo, the newspaper reported.

Asahi Kasei aims to first develop a system based on a brand-new battery, and expects to launch sales in fiscal 2012 for 1-2 million yen through Asahi Kasei Homes. It will then gradually equip the system with recycled batteries and lower the price to under 1 million yen, the daily said.

It is estimated that more than 500,000 EVs will be sold in Japan annually by 2020, the Nikkei reported.

The battery is expected to offer a 10kw capacity so that users will be able to store power at night when rates are lower for use during the day, the daily reported.