May 30, 2008 - Volkswagen has partnered with electronics maker Sanyo to develop lithium ion batteries for electric cars. The two companies previously collaborated to develop nickel metal hydride batteries, now used in most gas-electric hybrids. Lithium ion batteries are more powerful than nickel metal hydride batteries, making them better candidates to power the electric cars of the future, according to Volkswagen.

"Our focus in future will be directed more strongly at making electrically powered automobiles alongside ones driven by more efficient combustion engines," says Volkswagen CEO Martin Winterkorn.

Volkswagen says it plans to bring battery-powered vehicles to market by 2010.

Sanyo will start mass-producing lithium ion batteries in 2009 and will invest more than $750 million to expand production by 2015.

Volkswagen is just the latest automaker to enter the race for lithium ion battery technology. Nissan's joint venture with electronics maker NEC is also scheduled to start mass-producing lithium ion batteries next year.