DETROIT — Explosive growth in the number of hybrid gas/electric vehicles manufactured and sold in coming years may strain makers of the expensive battery packs that help power them, according to a report in USA Today on November 25. With relatively few hybrid models on the market, the three major suppliers of the batteries – Japan´s Panasonic and Sanyo and U.S.-based Cobasys – may have enough production capacity to meet automakers´ current plans over the next few years. But without expansion or more players coming into the market, batteries could be in short supply three or four years from now when more automakers expect to begin selling hybrids. Even now, suppliers appear unable to quickly add production. Ford Motor Co. has already complained that Sanyo – battery supplier for the hybrid version of the Escape sport/utility vehicle – can´t build enough batteries. The hybrid Escape went on sale in September. Ford expects to build 20,000 for the 2005-model year but would like to build more. Ford is in talks with Sanyo about boosting production. It also is talking with other hybrid battery makers to get more supply. Sanyo officials in Detroit said they could not talk about their production plans because of contract agreements with Ford. Automakers hope that the growing popularity of hybrids will entice other companies to build the battery packs, increasing competition and ultimately reducing the price, which now can run as high as $5,000. That added competition is likely, says Brion Tanous, an equity research analyst at Merriman Curhan Ford & Co. in San Francisco. "Over the next three to six months, you will see a flurry of announcements of what battery companies have design contracts and what hybrid vehicles are coming from the automakers," he says. Hybrid vehicle designs vary. But all use an electric motor, powered by a battery pack, to aid the gasoline engine. Energy generated when the brakes are applied recharges the battery. The electric/gas combination – some foreign designs use diesel – dramatically increases fuel economy and reduces tailpipe emissions. Hybrid batteries use nickel metal hydride, rather than the lead used for non-hybrid car batteries. The nickel metal hydride batteries can hold twice as much energy as lead batteries, have a longer life cycle and require no maintenance; the materials in them and are far less toxic than regular car batteries. But they can be heavy and bulky, so battery makers are searching for ways of making them lighter yet more powerful. J.D. Power and Associates estimates that by 2007, about 410,000 hybrid vehicles will be sold in the United States, up from an estimated 70,000 this year and about 47,500 in 2003. By 2011, about 35 hybrid models will be on the market, predicts Anthony Pratt, a forecaster for J.D. Power. "There will be hybrids in every segment." Other battery makers will help meet the increasing demand when they complete the vigorous testing required of battery packs, says Bob Stempel, former CEO of General Motors who is now CEO of Energy Conversion Devices. ECD and Chevron/Texaco own Cobasys in a 50/50 joint venture. "The automakers want a year´s worth of testing before they put it in their vehicles," he says. Besides increasing hybrid models and sales, another problem could threaten the future supply of batteries. As cellphone companies begin updating the backup generators at their towers, they may move to nickel metal hydride batteries for the same reason automakers turned to them for hybrid cars. Most cell towers currently rely on several lead batteries stored in a shed near the tower for power during blackouts.
Hybrids May Face Battery Shortage
DETROIT — Explosive growth in the number of hybrid gas/electric vehicles manufactured and sold in coming years may strain makers of the expensive battery packs that help power them, according to a report in USA Today on November 25.
More Operations

Hybrids: Electrification Without the Challenges
For fleet managers, fuel is one of the biggest line items in the budget — and it's one hybrids can shrink without changing how your people work. Download the eBook to see the numbers, understand the technology, and get a step-by-step guide to making the switch.
Read More →
How NOV Uses Telematics to Improve Fleet Safety Across 160 Locations
James Victory of NOV discusses how the company manages fleet safety, maintenance, and telematics across more than 150 locations supporting oilfield operations throughout the U.S.
Read More →
Fleet Meets: Steven Santostasi
This edition of the Fleet Meets series features Steven Santostasi, the current TSP channel manager for Ford Pro.
Read More →
Why Fleet Managers Are Replacing Departmental Vehicles with Shared Motor Pools
Departmentally assigned vehicles often create hidden costs through underutilization, poor visibility, and increased administrative burden. This white paper explores how shared motor pool strategies help fleets reduce costs, improve accountability, and optimize vehicle utilization.
Read More →Soap Box Derby Challenge: Assembling the Crew
Meet Gabriel, Matthew, and Angel — the team helping bring this soap box derby build to life.
Read More →
BBL Fleet Acquires Velcor Leasing Corporation
BBL Fleet expanded its footprint in the fleet management industry with the acquisition of Velcor Leasing Corporation of Madison through a stock purchase agreement finalized Feb. 27, 2026.
Read More →
Lytx Introduces New AI Fleet Technologies at Protect 2026
The company introduced new AI-driven fleet safety and operations technologies during its annual user conference.
Read More →
Fleet Costs Are Rising: Here’s How Leaders Are Responding
Fleet leaders are under pressure to reduce costs, adapt to economic uncertainty, and make smarter decisions. See how peers across North America are responding with real data, proven strategies, and forward-looking insights. Download the 2026 Market Pulse Report to benchmark your strategy and uncover where you can gain an edge.
Read More →From Waffle House to AI: Fleet Trends You Need to Know
In this AF news recap, host Faith Howell covers how Waffle House stepped up during disaster response and new AI tech on the market.
Read More →Fleet Operations in the Age of AI: Navigating Ethical and Legal Challenges
AI is no longer a future concept for fleets—it’s already embedded in the tools, data, and decisions that operators rely on every day. In this episode of the Fleet Forward Podcast, recorded live at Fleet Forward, industry leaders take the conversation beyond hype to examine what responsible AI adoption really looks like in fleet operations.
Read More →