In this paper the environmental performance of an advanced hybrid energy storage system, comprising high power and high energy lithium iron phosphate cells, is compared with a stand alone battery concept composed of lithium manganese oxide cells. The methodology used to analyse the environmental impacts is Life Cycle Assessment (LCA). The manufacturing, use phase and end-of-life of the battery packs are assessed for twelve impact categories. The functional unit is 1km driven under European average conditions. The present study assesses the environmental performance of the two battery packs for two scenarios: scenario 1 with a vehicle total drive range of 150,000km and scenario 2 with total driving range of the car of 300,000km. The results of scenario 1 show that the increased efficiency of the hybrid system reduces, in general, the environmental impact during the use stage, although the manufacturing stage has higher impact than the benchmark. Scenario 2 shows how the extended lifetime of the hybrid system benefits the emissions per km driven.