Will Electric Vehicles Finally Succeed?

A new wave of plug-in hybrids and all-electric vehicles will have to overcome a familiar nemesis: battery costs.

Leaf meets world: Nissan executives and guests give the automaker's all-electric car an enthusiastic introduction. Credit: Associated Press

The Price of Batteries
Although costs are uncertain, they will be key to the success of electric cars. (Download PDF)

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At the end of 2010, GM and Nissan each began selling cars that run on electricity most or all the time. The Volt and the Leaf are only the first of dozens of new electric vehicles and plug-in hybrids to come: every major automaker has promised to start selling such cars over the next few years. Toyota, which has led the world in its development of gas-electric hybrid technology, plans next year to introduce a new version of its Prius that will be able to run on electricity alone for short distances. Meanwhile, startups such as Coda Automotive are trying to break into the auto industry with plug-in hybrids and all-electric cars—following the lead of Tesla Motors, whose electric sports car may have helped set the new wave in motion when it was introduced in 2006.

If these cars become popular with buyers, it will mark the beginning of the biggest shift the auto industry has seen for decades: a shift away from an almost exclusive reliance on petroleum and the internal-combustion engine. GM, just emerging from bankruptcy, is counting on the Volt to change its image from purveyor of the Hummer and other large SUVs to leader in innovation and energy efficiency. For its part, Nissan is staking much of its future on electric vehicles; over the next few years it plans to ramp up production to sell hundreds of thousands of them annually, far more than any other automaker.