In order to satisfy basic battery characteristics for electric vehicles (EV) such as specific energy, specific power and cycle life that are required for driving on urban streets, the authors have selected the valve-regulated lead acid battery as a conventional battery and the nickel/metal-hydride battery as an advanced battery, and have been studying their development in order to put them into practical use by 1998. Regarding the nickel/metal-hydride battery, excellent nickel positive electrode with high temperature charge efficiency accomplished with additives such as Ca compounds, and an exceedingly good hydrogen absorbing alloy negative electrode with high capacity and long cycle life, achieved by adjustment of alloy composition, surface treatment, and control of binder and conductive additive have been developed to overcome difficulties in the scale-up of battery size. Modular batteries using this technology possess specific energy twice (70 Wh/kg) that of the lead-acid battery, and have superior specific power (160 Wh/kg) and cycle life. 5 refs.