FUKUCHIYAMA, Kyoto Pref. (Kyodo) Back in the early 1970s, Honda Motor Co. both impressed and shocked the global auto industry by becoming the first automaker in the world to develop an engine that complied with stringent U.S. emissions controls at the time.

Nearly 40 years later, Japan's second-largest automaker remains ahead in the green race for fuel-efficient cars, bringing a megahit, low-priced Insight hybrid hatchback into a market pounded by an unprecedented dive in worldwide car sales.

And now, it is ditching its go-alone policy by forming a joint venture with GS Yuasa Corp. to manufacture lithium-ion batteries for gasoline-electric hybrids that are more compact, lightweight and powerful than existing batteries.