Driving to work and flipping on a light switch may seem to unrelated activities, but very soon lithium ion batteries will assist in making both possible.

The nascent electric vehicle market is likely to standardize on lithium ion batteries. Today the cost of plug-in and all-electric vehicles is too high for many consumers thanks to batteries, which can add $10,000 or more to the price tag. The cost of batteries is only expected to come down after battery cells and packs are produced in sufficient volume to achieve economies of scale.

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Some heavyweights who know a thing or two about transportation are having a pointed online debate about whether or not electric vehicles should receive support from the federal government.

Terry Tamminen, who was Secretary of the California Environmental Protection Agency under Republican Governor Arnold Schwarzenegger, threw down the gauntlet last month in an editorial in which he stated that “it’s time to dump the battery-powered car in the same policy landfill as corn-based ethanol.”

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In advance of the Frankfurt Auto Show next week, details are leaking out about the plug-in hybrid and all-electric (or battery electric if you prefer) vehicles that will be showcased there. Automakers from Asia to Europe to North America are busy trying to outdo each other with promises of fuel efficiency and reduced emissions.

Hyundai, Mercedes, Fisker, Peugot and others will be in Germany, touting electric vehicles due to go on sale within the next few years. Most automakers are hedging their bets by promising both PHEVs and EVs at some point in the future.

But the hype around plug-ins so far has been greater than EVs for good reason — there will be a wider selection of models, and they are likely to sell in far greater quantities through the first half of the 2010’s than battery-electrics. PHEVs will sell because they will sufficiently address consumer expectations in the key areas of performance at a substantially reduced cost.

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The federal government has made it abundantly clear that they want the upcoming plug-in and electric vehicles to succeed. The government has awarded $2.4 billion in stimulus funds for the manufacture of vehicles and their components as well as to establish a vehicle charging infrastructure.

Among the grants is funding for establishing 12,500 charging stations across five states. Another 2,550 charging stations could be becoming very competitive in installing public charging stations. Also, big box retailers are expected to offer free charging to encourage people to shop and recharge their batteries.

But government agencies need to walk a fine line in building out the electric vehicle charging infrastructure. The government is keen on eliminating “range anxiety” — the fear that an electric vehicle might run out of battery power before it can be recharged — that could discourage consumers from buying electric vehicles. (Extended range vehicles such as the Chevrolet Volt can tap the gas tank, so it’s less of a concern.)

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The combination of electric motors and diesel engines has worked well in locomotives and heavy trucks for years, but carmakers haven’t been successful in getting beyond the concept car stage for light duty vehicles. Five years after I started writing about the potential for diesel hybrids, the passenger vehicle market is still relatively quiet — but that at last may change.

The premium paid for diesel engines and additional cost of an electric motor has scared off auto manufacturers. However, the two powertrains have compelling complementary performance characteristics. For city driving, electric motors (powered by batteries that recapture energy from frequent braking) provide needed acceleration. Diesel engines thrive in comparison to gasoline engines when hauling heavy loads and maintaining highway speeds.

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Clean tech companies hoping to capitalize on the 30% Advanced Energy Manufacturing Tax Credit (48C) for re-quipping, expanding, or establishing a manufacturing facility must submit a preliminary application for Department of Energy (DOE) recommendation by September 16, 2009. The federal government has allocated $2.3 billion for this credit. If the limitation is reached during the first allocation round (2009-2010), then no further credit will be permitted.

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The Smiths have a Ford, and the Johnsons have a Nissan… but how long will it take the Jones to have a Tesla in your neighborhood?

Tesla Motors, along with Ford and Nissan, were recently awarded loans from the US Energy Department, totaling about $8 billion, to help automakers transition to making more fuel-efficient vehicles. Tesla Motors, which produces high performance, consumer-oriented battery electric vehicles, received $465 million to finance the manufacturing plant for their Model S, as well building a powertrain plant. The Model S, an electric sedan, expected to start production in 2011, will cost roughly $49,900, after a $7,500 tax credit.

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If you haven’t heard about GRID Alternatives yet, you probably missed the fundraiser CleanTechies organized for this fabulous non-profit in March. The party was a lot of fun, and we raised over $4,000 for GRID Alternatives that evening. Now, there’s another fundraiser coming up that – and it promises to be another exciting party: There will be dozens of electric vehicles available for viewing and even test drives – including the Tesla Roadster, futuristic prototypes displayed by Stanford and PG&E, plug-in hybrid conversions, motorcycles, scooters, neighborhood electric vehicles and much more. Industry experts will be speaking about current trends in electric-powered transportation, such as:

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