In a report in Automobile Magazine, Tokyo battery production is being far exceeded by demand for the 2010 Toyota Prius. Panasonic EV Energy Co., Toyota's sole battery supplier is hard pressed to keep up with the projected 500,000 Prius production output. As a result, some new Prius buyers may have to wait.

Toyota Prius production capacity will increase with the opening of its new plant in Tupelo, Mississippi, which has been delayed, presumably by the battery shortage. Working around the clock, the Panasonic plant is gearing up to double its production by next year.

Battery wars have spread to the U.S. with the Obama Administration earmarking $2.4 billion in grants for battery development and research. President Obama's goals are to reduce the cost of NiMH and lithium-ion batteries while exploring other technologies involving reducing the toxicity of lead-acid batteries for use in hybrid vehicles.