Following Audi CEO Rupert Stadler's declaration that the German automaker would be building an EV within the next decade, things seem to be moving along inside the VAG group. Although a pilot project, Audi has signed an agreement with Japanese supplier Sanyo to develop batteries for hybrid and electric vehicles. The automaker intends to use the lithium-ion batteries in the second and third generation of Sanyo's technolgy. The upcoming Q7 Hybrid will have nickel-metal batteries supplied by Sanyo.

The project is eventually expected to reach €1 billion, but the scope is developing the technology for the highest number of models possible, including small cars (VW Up, Audi A1). Sanyo will benefit from a solid project after three years of restructuring the company.

Despite Europe's love affair with diesels, which seems to have largely kept Europeans away from embracing hybrids, most trips are less than 40km, a territory where hybrids, plug-in hybrids and EVs have a lot to say.

[Source: Süddeutsche Zeitung]

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