Hybrids with Li-ion in Their Tank

Subaru, Toyota, and other carmakers are looking to lithium-ion battery technology to power the next stage of hybrid evolution

Among the slew of new hybrids at the North American International Auto Show last week in Detroit, Subaru’s B5-TPH concept car stood out. One reason is that the sporty, 256-horsepower two-seater is pretty stylish by Subaru standards. Just as important, though, is a feature that was all but invisible to the casual observer: The car stores its power in lithium-ion (Li-ion) batteries instead of the usual nickel metal hydride, or NiMH, cells found in today’s hybrids.

That might not sound like a big deal. But battery experts reckon that lithium-ion cells are the shape of things to come for hybrids. While Subaru’s parent, Fuji Heavy Industries, says it has no plans to market the B5-TPH anytime soon, the company will hit the market with a Li-ion hybrid next year.
Subaru is far from alone. Several other Japanese auto makers are close to using Li-ion batteries to power hybrids, while non-Japanese manufacturers have also expressed interest, say execs at Sanyo Electric (SANYY ), a key supplier of batteries. Market-leader Toyota (TM ) has indicated it will step up development of Li-ion-powered hybrids. And Nissan (NSANY ), which produced a limited run of 100 hybrids using Li-ion cells back in 2000, now hopes to ramp up the technology (see BW Online, 1/5/06, “Pursuing New Power for Hybrids”).

SERIOUS CONSIDERATION. “Lithium ion has been marching along, finding new applications and becoming more and more the dominant technology,” says Brian Barnett, managing director of Tiax, a technology research firm based in Cambridge, Mass. “The next target is hybrids.”

Business Week