Sony is planning to sell its battery business to Japanese components company, Murata.
While financial details have yet to be disclosed, binding agreements are expected to be set by October with the transfer set to be completed by the end of March.
The deal will encompass Sony’s manufacturing operations in China and Singapore, in addition to the Sony Energy Devices Corporation subsidiary.
Sony’s decision to sell its battery business to Murata comes as a result of lackluster battery sales in recent years, with Sony being forced to take out a 30.6 billion yen (271 million U.S. dollars) impairment charge on the division at the end of the last financial year.
The sale will mark the end of the Japanese giant’s reign as a leader in developing battery technology, with the company’s most significant contribution being responsible for bringing the first ever commercialized lithium ion battery to market in 1991.