Toshiba Infrastructure Systems & Solutions, Toshiba's infrastructure unit, is teaming up with Johnson Controls Power Solutions of the U.S. to make lithium-ion batteries, the Japanese company said on Wednesday.

The partners will combine their battery technologies to sell storage batteries for regenerative braking systems to European and U.S. carmakers.

Toshiba will supply lithium-ion secondary, or rechargeable, batteries made in Japan to Johnson Controls' production facility in the U.S. state of Michigan. Toshiba will combine its storage batteries with Johnson Controls' lead-acid batteries, aiming to sell them to automakers, starting in 2020. The partners hope for annual sales in the tens of millions of dollars.

The two companies will supply storage batteries used in regenerative braking systems found in hybrid and electric vehicles. Regenerative brakes convert the energy produced from braking into electricity, which then gives a boost to the car during acceleration. Storage batteries require rapid charge and discharge as the car changes speed during driving.