The following post is by Earl Killian, guest blogger at Climate Progress.

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VW Twin Drive under the hoodThe German government announced it will be helping to fund VW’s plug-in hybrid development program with 15 million euros. VM aims for a 2010 vehicle with 31 miles of all-electric range. VW head Martin Winterkorn said that while petrol or diesel powered cars would be around for some time to come, “the future belongs to all-electric cars.” According to autoblog, the Twin Drive uses a 82-hp electric motor and a 2.0L turbodiesel producing 122 hp.

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VW recently signed a deal with Sanyo, which is aggressively ramping up automotive lithium-ion battery production. It expects the hybrid and plug-in hybrid markets to be 4 to 4.5 million vehicles by 2015, and aims to capture 40 percent of this market. Sanyo uses a mixture of Ni, Mn, and Co for the positive electrode, thereby producing a safer battery that exhibits power retention ratio of 80 percent or higher after 10,000 cycles (10-15 years in a hybrid vehicle).

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Last week, Daimler announced it would bring an electric car to market in 2010.

For more on plug ins, see “Turn on, plug in, drop out.”

This post was created for ClimateProgress.org, a project of the Center for American Progress Action Fund.

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