Sony Corp. is in talks to sell its battery business to a state-backed investment fund, according to a person with direct knowledge of the negotiations.

Innovation Network Corp. of Japan hasn't made an offer for the acquisition yet, said the person, who declined to be identified as the information isn't public.

Taiwan's Hon Hai Precision Industry Co., the world's largest contract maker of electronics, has also shown interest in the buyout, the Nikkei business newspaper reported Saturday.