Lithium battery bonanza

Lithium battery technology is finally making its way to production hybrids and planned EVs, but improvements are needed.

While many forecasted “future” technologies seem to continuously retreat into the future, perpetually out of reach, lithium-ion (Li-ion) battery technology for use in hybrid, plug-in hybrid, and pure battery-electric vehicles is maturing on schedule and will soon play a key role in the growth of electric-drive-vehicle sales. With the Mercedes-Benz S400 hybrid, Li-ion battery technology has reached mass production. Li-ion batteries also are used in the limited-production Tesla Roadster.

Today, the nascent market for Li-ion batteries for transportation use is $31.9 million, according to market researcher A.T. Kearney. That market will balloon to $21.8 billion-with a “b”-by 2015 and continue to $74.1 billion by 2020, the company predicts.