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In the stack of info I've been collecting (latest in June 07) The Volt is still on. Right now the designs for a tool-up are in progress. The hold-up of production will depend on battery developement. Right now 40 miles is all that's available without a new charge or use of APU. This at a prohibitive but available lithium battery price. The object is to not only lower battery price through developement but extend those same batteries life to that of car.
 

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Toyota is working LiIon, but with Panasonic (the supplier of the Prius NiMh battery). Note that Toyota owns a big chunk of the Panasonic battery operation, so they are following the (usually successful) practice of overseeing their major suppliers directly in the development of production quality items. Very little hard core info comes out of Toyota Japan, so while the Volt is getting massive internet coverage, Toyota could spring a big surprise quickly out of the blue.
 
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