Energy Conversion Devices (ENER) makes nickel-metal hydride (NiMH) batteries for hybrid cars through its Cobasys joint venture with Chevron (CVX). These are great batteries -- I have them in my Toyota Camry hybrid -- but Cobasys had to work hard to reduce this technology's tendency to bleed oxygen at lower temperatures, and be susceptible to explosions at higher temperatures. Their reward for all their hard work has been to capture a large portion of the value-added in hybrids. Today, the percentage of the overall production cost of a regular car accounted for by electronics and software is about 20% (far more than the cost of the steel, incidentally), but 50% for a hybrid.

A new technology, nanophosphate lithium-ion batteries, is now on the market in the DeWalt portable saw. It takes only five minutes to recharge, does not emit oxygen at any temperature, and is unlikely to explode. For now, it is only applicable to smaller applications like portable power tools, but I think it will eventually scale up to hybrid car size. Combine that with the next generation of plug-in hybrids that can be charged by solar cells on your garage roof, and things could get interesting. Plugging into a service station outlet for five minutes isn't any more onerous or time-consuming than filling up at the pump.

Don't worry about these batteries threatening ENER and Chevron, because the M1 battery in the DeWalt saw is made by a company called A123 Systems and... Cobasys. ENER and Chevron are making sure that if anyone obsoletes their current products, it will be them.