Kanadevia (TYO:7004) said it will transfer its all-solid-state lithium-ion battery business to Suzuki Motor (TYO:7269), effective July 1, according to a Wednesday filing on the Tokyo Stock Exchange.

The companies signed a business transfer agreement covering the research, development, design and sales of Kanadevia's all-solid-state batteries, known as AS-LiB. The transfer price was not disclosed and will be settled in cash.

Kanadevia has developed the batteries since 2006, targeting use in extreme environments such as space. In 2022, it installed a demonstration device on the Japanese experiment module "Kibo" aboard the International Space Station under a joint project with Japan Aerospace Exploration Agency.

The company said intensifying competition in the sector prompted it to seek a partner with stronger capabilities in electric mobility and battery development.

Kanadevia expects to book an extraordinary gain of about 7.4 billion yen in the second quarter of the fiscal year ending March 31.