Winchester, UK - Volvo Car Corporation has selected advanced, lithium-ion battery systems designed and produced by Ener1, Inc. to power a pair of plug-in hybrid V70 demonstration cars being put through their paces across Europe later this year as part of a development program leading up to the planned 2012 commercial launch of a production plug-in model.

The project is a joint venture between Volvo and Vattenfall, one of Europe's largest electric utility companies and a leading proponent of electric vehicle infrastructure build-out.

With a single charge from an ordinary household socket, the cars can run up to 31 miles (50 kilometers) using only battery electric power, more than meeting average daily commuting needs for the vast majority of drivers. Beyond the electric-only range, a highly fuel-efficient diesel engine kicks seamlessly in to power the vehicle without interruption.

Made by Ener1's manufacturing arm, EnerDel, the batteries were custom built for this real world test program, to be operated in one of the most advanced automotive and utility partnerships in the industry. A standard production car was chosen as the platform in order to prove broad applicability of the technology in otherwise conventional automobiles. The diesel engine will eventually run on renewable biodiesel as well as standard blends.

"Efficient, durable high-performance batteries are a vital element in plug-in hybrid and electric drive vehicles. They have to work year-in, year-out under harsh conditions and extreme temperatures, which means engineering and design are absolutely critical," said Anders Bjornberg, Hybrid Vehicle Specialist at Volvo Cars Hybrid Centre.

The cars will be used to gather information and experience about the driving habits and performance expectations of everyday motorists using the new technology, as well as their actual charging needs. Vattenfall will test different concepts for high-speed home charging, as well as charging stations in public places, where owners pay to fuel with electricity instead of liquid fossil fuels.

The partnership between Volvo and Vattenfall began in January, 2007. With the current project, both companies say cooperation is now being taken to the next level. The goal is to produce plug-in hybrid vehicles and introducing them on the market as early as 2012.

Vattenfall is Europe's fifth largest generator of electricity, with operations in Denmark, Finland, Germany, United Kingdom, Poland and Sweden. Vattenfall is active at all stages of the electricity value chain - generation, transmission, distribution and sales.

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