For those wanting to electrify their Vanagon. Could be viable hybrid upgrade on the horizon.. . 

By Naoko Fujimura and Tetsuya Komatsu

May 28 (Bloomberg) -- Volkswagen AG, Europe's largest carmaker, will jointly develop a lithium-ion battery system with Sanyo Electric Co. for use in hybrid cars as record oil prices spur demand for fuel-efficient vehicles. 

Sanyo will spend a total of 80 billion yen ($767 million) by 2015 to make the batteries, including opening a new factory in 2010, the company said in a statement today. Volkswagen plans to introduce its first vehicle using the technology by 2010, the Wolfsburg, Germany-based company said separately. 

Global automakers are working with Japanese electronics manufacturers to develop lithium-ion batteries for hybrid cars, as they are lighter and more powerful than the nickel-hydride batteries currently used. The price of crude oil has doubled in the past year and reached a record $135.09 a barrel on May 22. 

``There will be constant growth in the hybrid-car market,'' Mitsuru Honma, Sanyo senior vice president, said at a press conference in Japan's Osaka prefecture today. A location for the factory has not been decided, he said. 

Worldwide sales of hybrid vehicles powered with lithium-ion batteries may total between 4 million and 4.5 million units in 2015, according to Sanyo. The company aims to have a 40 percent share of the market for the batteries in 2015, Honma said. 

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a5sRdxv2D878