Renewable Gossip

The Ford Focus EV is due in 2011.

With oil prices reaching record levels for the year—and potentially heading higher—the prospects for electricity-powered cars is also on the rise. Barclays Capital said, “The groundwork for a sustainable move into higher price ranges has been laid.” Deutsche Bank said prices could surge to $100 a barrel in the next two quarters if the US dollar continues to weaken—with relatively little effect on a global economic recovery. Rising oil prices alone are not enough to ensure the future of electric cars—but there are clear signs of a massive transition to plug-in hybrids and electric cars.

The industry to produce lithium ion batteries—they key component of electric and plug-in hybrid cars—is ready to boom. In a report released on Wednesday, Pike Research projects that lithium ion batteries will make up more than 20 percent of the global $4.1 billion energy storage sector within the next decade. The Mercedes S400 hybrid will be the first mainstream production vehicle to use a lithium battery, when it’s introduced later this year. The next generation of plug-in hybrids and electric cars will all utilize lithium ion batteries, which can provide more power and energy storage in a smaller lighter weight package. “While lithium ion was once limited to consumer electronics devices, it is quickly becoming the battery of choice for electric vehicle manufacturers,” said Pike Research analyst David Link.

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