What's the deal with lithium-ion batteries for electric vehicles? Are they really coming as soon as Chevy's Volt would seem to indicate - or are they still too pie-in-the-sky to gamble on?

GM is racing full-speed ahead with suppliers to develop them for volume production of the Chevy Volt plug-in hybrid in about three years. Toyota is saying they're still too expensive and potentially dangerous, but is still working on them for the next Prius. Aspiring independent maker Tesla is promising fast, expensive Li-ion-powered sports car EVs available any day now and luxury sedans following soon after. Ford, Chrysler, Nissan, and others are toying with Li-ion-powered EV concepts while working on the technology with battery suppliers.

"The card we have up our sleeve in terms of advanced technology and propulsion," GM Global Product Vice Chairman Bob Lutz told a large audience of auto executives, engineers, and media at the Center for Automotive Research Management Briefing Seminars, held this August, "is our E-Flex architecture and electric propulsion system. But before we get to play that card, we need further advancement in battery technology. And we're making great progress there."

Then he announced a new agreement with A123Systems to "co-develop" A123's nanophosphate Lithium-ion chemistry for a long-lasting, safe, and powerful battery for plug-in hybrid and other E-Flex variants.

"This is a great strategic agreement," Lutz said, "and it will help us get E-Flex, and vehicles like the Volt, on the road sooner. Breakthrough battery technology will drive future automotive propulsion, and the company that aligns with the best strategic partners will win."