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Blue Energy, the recently announced joint venture between Honda Motor Company and GS Yuasa, has begun construction of a new battery manufacturing plant. A groundbreaking was held this week for the Osadano Plant in Fukuchiyama, Kyoto where Blue Energy will develop and produce lithium ion batteries for future Honda hybrid vehicles. Production of batteries at the factory should start in the fall of 2010.

Honda and the GS Yuasa Corporation have agreed on a joint venture contract for the "manufacturing, sales and R&D of Lithium-ion batteries for hybrid vehicles." Called Blue Energy (apparently, the Japanese have taken to the European shift of the eco-defining color word?), the new company is the result of last December's announcement and months of discussions on how to bring li-ion vehicle batteries to market. Hybrids will be the "central focus" of the JV, which makes sense given Honda's dista