Electric cars will form part of Volkswagen's future car range, the German giant has announced.
It is working on a new, highly efficient battery with Sanyo that will be used to power both full electric and hybrid models.
The high tech lithium-ion batteries will give the VW models a longer charge life and working range than current systems.
Professor Martin Winterkorn, boss of VW, said: "Our focus in the future will be directed at making electrically powered vehicles alongside ones driven by more efficient combustion engines."
Volkswagen recently unveiled its Golf TDI Hybrid at the Geneva motor show.
This car uses a diesel engine and electric motor to give a clear indication of the direction VW is heading in.
Winterkorn said that VW hopes to have its first hybrid models on sale by 2010.
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