Toyota CEO Akio Toyoda.

Toyota Motor (TM - Get Report) and Panasonic Corp. (PCRFY) are teaming up to build a consortium of companies to standardize electric car batteries in a move that could help the Japanese auto industry catch up with foreign rivals, according to the Nikkei Asian Review

Toyota subsidiary Daihatsu Motor and capital partner Mazda Motor are expected to be asked to join the group as well. Rivals like Honda Motor could also be asked to join. 

The group could work on recycling used batteries, resulting in lower costs for making the batteries, which account for the majority of the cost. 

Today's report follows up a Toyota announcement in November that the company will purchase and sell a part of the electric vehicles that Suzuki Motor will build in India under its own name.