By REBECCA SMITH

The Department of Energy is awarding billions of dollars to companies developing next-generation batteries that can power cars. But one crucial element is in short supply: stations where electric vehicles can recharge.

Though the Energy Department is spending $2.4 billion on developing technology for electric vehicles, very little is for the infrastructure needed to recharge vehicles once they are on the road.

President Obama has announced a $2.4 billion plan to revitalize the U.S. electric car industry. The plan aims to make America a key player in an industry dominated by Asian and European manufacturers, Joseph White reports.

Despite the government money, the industry's chicken-and-the-egg dilemma remains: Demand for electric cars isn't likely to take off unless there are convenient ways to recharge batteries. But utilities and service-station operators aren't likely to spend money on such infrastructure until there are enough cars on the road to make the investment profitable.

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Posted by rjorr at August 6, 2009 2:18 PM