Ener1 Inc. said its EnerDel subsidiary has received an 18-month, $6.5 million lithium-ion battery technology development contract from the United States Advanced Battery Consortium.

USABC in collaboration with the U.S. Department of Energy awarded the contract to develop lithium-ion battery technology for hybrid-electric vehicle applications. The contract represents the second of a three-phase USABC program. EnerDel successfully completed Phase I in June. Phase II involves scaling up to a production caliber cell, extensive lifetime testing and evaluation, and demonstrating the technology in battery modules.

The USABC program aims to produce a cost-competitive, lithium ion battery that is lighter, smaller and higher in power than existing battery technologies for hybrid electric vehicles.