One of the most exciting battery chemistries for electric vehicles is lithium-sulfur--it has the potential to store three times more energy than the lithium-ion batteries currently used in electric cars. Historically, however, it's had a number of problems. Early prototypes could only be recharged a few times, the lithium metal used in one of the electrodes caused short circuits and can react violently with water, creating a safety concern, and the carbon that makes the sulfur electrode conductive takes up too much space, decreasing storage capacity.

Earlier this year we reported on several advances geared toward addressing these problems, and noted that these advances had caught the eye of the chemical giant BASF, which is now working to bring lithium-sulfur batteries to market. But challenges remain, including bringing down costs. Now the Department of Energy has also taken an interest in the technology. This week Sion Power Cooperation (which is working with BASF) announced that it has received a three-year, $800,000 DOE grant to further develop the lithium-sulfur batteries for electric vehicles.

Batteries that recharge in 5 to 10 minutes could help make electric vehicles more competitive. Credit: Proterra.

The high cost of batteries is one of the biggest reasons why electric vehicles aren't widespread. We recently wrote about an interesting solution to this problem--rather than equipping an electric vehicle with enough batteries for a day's driving, use a minimal amount of energy storage but provide a way to recharge quickly. This way you can spend a lot less on energy storage and bring the cost down to something competitive with conventional vehicles. In the case we wrote about, Sinautec Automobile Technologies has equipped buses with ultracapacitors with a very limited range--just a few miles--but that can be recharged in 30 seconds or so at bus stops.

Here's another approach from Proterra, a company based in Colorado. Instead of ultracapacitors, the company uses batteries from Altairnano that can recharge in 5 to 10 minutes at a special overhead recharging station. The solution doesn't seem as elegant as using fast-charging ultracapacitors--presumably you'd want a larger range between charges, so you'd need more batteries. But it might be good for some situations where you need a bus to travel further than a few miles between charges.

President Obama today announced 48 new advanced battery and electric-drive projects that will receive $2.4 billion in funding under the American Recovery and Reinvestment Act. The money could help start a battery industry in the United States, which could be essential for US automakers to start manufacturing plug-in hybrids and electric vehicles at a large scale.

For more on the significance of this funding for the battery industry, click here.

The announcement, with a list of the groups receiving funding, can be found here.

On its own, the money won't be enough to build the large-scale factories that some companies are planning. One, A123 Systems of Watertown, MA, received $249 million in grant money. But it has also applied for $1.84 billion in federal loans to finance its proposed factories in Michigan.