The race is on. I am not referring to the NASCAR Nextel Cup where Chevy drivers are dominating the entire field. What I’m referring to is the race to become the first automaker to mass produce a practical PHEV. And General Motors with the Chevy Volt looks to be leading the race especially now that the automaker has found an ally in A123Systems Inc. - a world leader in the development and production of Li-ion batteries.

What’s so special about Li-ion batteries you ask? The reason is that the Li-ion is far more powerful than the nickel-metal hydride batteries that hybrid cars today are using. A Li-ion battery pack is lighter than its Ni-MH counterpart. If you take that into consideration, it would mean that a small Li-ion battery will have the same output as a much larger Ni-MH battery. This means that on small cars, the interior space will not be cannibalized by the battery pack, if it is a Li-ion one. On large cars, automakers can use larger and more powerful Li-ion batteries and interior space will not be compromised.

The only problem is that current Li-ion battery making technology is not yet adapted to automotive application. The constant vibration of a vehicle in motion can seriously affect a fragile Li-ion battery which can result to an explosion. So with the A123Systems on their side, General Motors is looking to create the first Li-ion battery suited for automotive application.

As can be expected, the Volt will be the beneficiary of this partnership. I can say that the Volt is one good looking car and I am looking forward to seeing or even owning one. So this partnership between the two giant companies heightens the anticipation for the Volt.

Bob Lutz, General Motors’s vice chairman, said: “Breakthrough battery technology will drive future automotive propulsion, and the company that aligns with the best strategic partners will win. That’s what is so important about this deal. Whether you’re talking about the Chevy Volt, a fuel cell or even a plug-in hybrid such as our planned Saturn Vue, we need to understand the fundamental battery cell performance.”

“The Chevy Volt will lead the automotive industry in a new direction. We see a future where vehicles run on electricity and are equipped with clever ways of making electricity on board, making us less dependent on gasoline. It’s the next great paradigm shift in our industry, an opportunity largely due to the rapid advancement in battery cell technology by companies such as A123Systems and LG Chem.”