The Citroen C1 ev-ie will incorporate a new high-capacity lithium-ion battery developed by Europe’s largest independent battery manufacturer Axeon.

UK-based Electric Car Corporation will be tasked with building the new battery and Axeon is hoping to supply between 300 and 500 of the devices to Citroen over the course of the next 12 months.

Axeon, which is based in Dundee, is a specialist in batteries designed for commercial and industrial applications, but its core business is buoyed by the supply of lithium-ion technology to the automotive sector.

Chief executive officer of Axeon Lawrence Berns said: "We are delighted to be working with the Electric Car Corporation.

"This agreement is an endorsement of our technology development plans, further underlining our capabilities in the battery sector and our dominant position in the market, allowing us to capitalise on opportunities and continue to grow the company."

Another player entering the hybrid car fray is Audi, which announced last year that 2010 will see it introduce its first mixed-fuel vehicle – the Q5.

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