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Lithium-ion batteries provide higher charging efficiency and no memory effect, giving them an advantage over nickel-hydrogen batteries. With such excellent characteristics, the lithium-ion batteries are considered to be the most likely power source for HEVs FCEVs and so on. In 1999, we developed lithium-ion batteries featuring long service life, high output, high energy density, and high reliability, and delivered them to HEV. In 2004, Hitachi Vehicle Energy, Ltd., was established for developing and manufacturing lithium ion batteries specific to HEV. These batteries are now widely used in hybrid electric small-sized trucks and in buses and in hybrid railway motorcars.