south korea joins the lithium battery race

http://www.bloomberg.com/apps/news?pid=20601101&sid=apoyFp8LUpaU&refer=japan

South Korea Develops Lithium-Ion Batteries for Hybrid Cars

By Shinhye Kang

June 16 (Bloomberg) -- South Korea's government has developed a lithium-ion battery that will be used to power gasoline-electric hybrid cars produced by Hyundai Motor Co.

The government spent 39.3 billion won ($38 million) on the technology, the country's Ministry of Knowledge Economy said in an e-mailed statement today. Hyundai, South Korea's largest automaker, will use the batteries in a compact car to be sold from next year.

The government will also work with South Korean carmakers and battery manufacturers to develop technology that allows plug- in vehicles to be recharged at household electric outlets, the statement said, without giving further details.

Surging oil prices are boosting demand for fuel-efficient cars and trucks, intensifying competition for new technology. The U.S. Energy Department said last week it plans a $30 million program funding the development of plug-in electric vehicles, while Toyota Motor Corp., the world's largest maker of hybrid cars, said June 11 it plans to start mass-producing lithium-ion batteries in 2010.

Lithium-ion batteries, used to power mobile phones and laptop computers, are lighter and more powerful than the nickel- hydride units currently used in hybrid vehicles.

Hybrid cars use an electric motor for low-speed power, and a conventional gasoline engine that takes over as the car accelerates.

To contact the reporter on this story: Shinhye Kang in Seoul at [email protected];