North Carolina State University plans to take a leading role in the development of plug-in vehicles with a research hub that will draw participation and support from both the automotive and energy industries.

Funding will come from federal grants with an additional $1 million donated annually from the Advanced Energy Transportation Center. North Carolina Governor Mike Easley has also indicated that the state may contribute an additional $5 million.

Speaking at a forum on energy held at N.C. State, Gov. Easley said, "This new energy economy is out there just waiting for somebody to pluck it from the vine. I'm going to make sure that North Carolina gets its share. America's ready to go where North Carolina's ready to go."

Both Progress Energy Corp. and Duke Energy Corp. have pledged participation and are developing a grid system for vehicle charging away from home base. General Motors Corp. has also expressed interest in the program.

The initial 2 to 4 year goal for the initiative is to develop batteries that are less expensive, lighter, and more efficient and that can be charged from conventional home plugs. The long-term goal is a battery both powerful and efficient enough to serve as a gasoline replacement.

Overcoming the cost factor in battery production will be a major hurdle with researchers seeking to shrink the price for a battery from $10,000 to the $3,000 range.