The success of electric vehicles hinges on the advancement of battery technology beyond the current lithium ion technology. Also, with increasing use of renewable sources of power that are intermittent, the need for advanced energy storage for power grids is becoming critical. Batteries are increasingly attractive for grid storage, but their growth is currently impeded by high capital costs and reliability issues. Significant advances in battery technology will be required for these two markets to develop beyond the current niche segment. Material innovation and new process technologies are expected to take battery technology to the next level, allowing for the development of electric vehicles with acceptable range, lifetime, cost and safety, and for reliable and cost effective utility scale energy storage. This newsletter examines recent innovations in both lithium ion technology and new battery chemistries.