Today it was announced that Volvo’s C30 electric car which is powered by an Ener1 (HEV) lithium battery, achieved an important milestone.  During the North American International Auto Show, Volvo CEO Stefan Jacoby unveiled a crash tested C30 following a two development program between the two companies.  A test fleet of the electric vehicles will hit the road here in the states this year and the media will have an opportunity to test drive it.  Today’s announcement is just another indication that 2011 could very well be the year of the electric car with both the Chevy Volt and Nissan LEAF hitting the roads in increasing numbers as well.

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"Our tests show it is vital to separate the batteries from the electric car’s crumple zones to make it as safe as a conventional car," Jacoby said at a press conference.  "We are the first car maker to show the world what a truly safe electric car looks like after a collision with high-speed impact."

Ener1 prides itself on safety and is one of the reasons Volvo chose the company for its lithium battery solution.  “We are very proud to be collaborating with Volvo to help create one of the world’s most safety-focused electric vehicles," commented Ener1 Chairman and CEO Charles Gassenheimer.  "Safety is a central issue in electric vehicles and a key reason we were selected by Volvo is safety has always been the hallmark of the EnerDel battery.  Ener1 benefits greatly from collaborating with a company that is a world leader in safety and maintains the most exacting standards of quality."

Shares of HEV were up about 2% today and are seeking a bottom after a healthy correction over the past month.  In my opinion, shares are offering a mighty compelling entry point at current levels.