The electric car industry has been given a much-needed boost with the announcement that Volkswagen and Toshiba are teaming up to work on the next generation of electric vehicles.

The companies have agreed to a letter of intent, which will see Toshiba work on new electric batteries for the cars, created using lithium-ion battery systems.

Volkswagen Chairman Martin Winterkorn, said about the link-up with Toshiba: "A considerable amount of research and development work still has to be carried out until we can produce the electric vehicle, in the field of lithium-ion battery technology in particular.

"This is an area in which the Volkswagen group is working with further potential technological partners including Toshiba."

Lithium-ion the future

Toshiba announced at the beginning of February that it was to step up its battery production, with plans for new battery factories afoot. The company is fully behind lithium-ion technology in electric cars.

One of the most popular electric (albeit hybrid) cars out at the moment is the Toyota Prius, which uses a nickel-metal hydride battery. This new deal points to lithium-ion being the battery of choice for electric cars in the future.

Via MacWorld