German battery maker Varta has sealed a research agreement to lay the groundwork for mass production of lithium ion battery cells for electric cars as it seeks to take on Asian leaders in the sector. Varta, which currently specializes in batteries for hearing aids and large storage systems for solar energy, has agreed a cooperation deal with Germany's Fraunhofer Institute, a scientific research body, the two parties said on Monday. The German government has earmarked 1 billion euros ($1.1 billion) to support domestic companies looking to produce battery cells for EVs as a way to reduce German automakers' dependence on Asian suppliers and protect jobs at risk from the shift away from combustion engines. With the research project, Varta wants to gain technical advantages in battery cell production over Asian manufacturers and is in intensive discussions with relevant market players to broaden its product line, Varta CEO Herbert Schein told reporters in Stuttgart.