NAGOYA, Japan (AP) — Toyota plans to sell 9.85 million vehicles worldwide in 2008, the company said Tuesday, setting itself an ambitious target despite worries about a slowing U.S. car market as it tries to become the world's top automaker.

Toyota also said it plans to produce 9.95 million vehicles worldwide next year, up 5% from this year — the same projected on-year percentage jump for Toyota's global sales.

Its recent growth has put Toyota Motor Corp. on track to beat U.S.-based General Motors to become the world's biggest automaker by sales. GM has said it estimates this year's sales to total 9.3 million vehicles, against Toyota's estimate of 9.36 million sales.

Toyota's growth has been based in large part on the popularity of models such as the Camry sedan, Corolla subcompact and the Prius gas-electric hybrid.

Soaring gas prices have dramatically boosted the appeal of smaller fuel-efficient models that are Toyota's main strength...

Toyota also said it was preparing to start mass producing lithium-ion batteries for low-emission vehicles.

Lithium-ion batteries, already widely used in laptops and other gadgets, are smaller yet more powerful than the nickel-metal hydride batteries used in gas-electric hybrids like the Prius now.

Lithium-ion batteries will not be used in the Prius, on sale for a decade and the most popular hybrid on the market, according to Toyota.

The lithium-ion battery will be used in a plug-in hybrid, which would recharge from a regular home socket, and travel longer as an electric vehicle than the Prius. Toyota has started tests on its plug-in hybrid, but has not shown a model using the new battery.

Executive Vice President Masatami Takimoto, who oversees technology, said Toyota had developed the lithium-ion battery to a level that it is almost ready for mass production, although that won't start until sometime after next year.

Toyota President Katsuaki Watanabe said the hybrid will be a pillar of Toyota's growth in the years ahead, and he reiterated the plan to offer hybrid versions of all its models sometime after 2020.

As part of its strategy to be ecological and super-efficient in manufacturing — as well as with its products — Toyota will use solar energy and wind power to reduce global-warming emissions at what it called five "sustainable plants." The facility being built in Mississippi, set to be up and running in 2010, will be one such plant, Toyota said.