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TOKYO, Oct 28 (Reuters) - Japan's Toshiba Corp (6502.T) said on Tuesday it would invest 25 billion yen ($273 million) to build a new lithium-ion battery plant in northern Japan, eyeing growing demand for batteries used in electric vehicles.

The plant, to be built in Kashiwazaki, Niigata Prefecture, will have an initial capacity of 500,000 cells per month, more than quadrupling Toshiba's capacity when the plant goes onstream in the spring of 2011.

Toshiba now makes its rechargeable SCiB (Super Charge ion Battery) at another facility in central Japan, which has monthly capacity of 150,000 cells.

"We hope to raise capacity at the new plant to several million in a few years, as electric vehicle demand grows starting in 2011/12," spokesman Ken Shinjo said........