Powertrain hybridization as well as electrical energy management are imposing new requirements on electrical storage systems in vehicles. This paper characterizes the associated vehicle attributes and, in particular, the various levels of hybrids. New requirements for the electrical storage system are derived, including: shallow-cycle life, high dynamic charge acceptance particularly for regenerative braking and robust service life in sustained partial-state-of-charge usage. Lead/acid, either with liquid or absorptive glass-fibre mat electrolyte, is expected to remain the predominant battery technology for 14V systems, including micro-hybrids, and with a cost-effective battery monitoring system for demanding applications. Advanced AGM batteries may be considered for mild or even medium hybrids once they have proven robustness under real-world conditions, particularly with respect to cycle life at partial-states-of-charge and dynamic charge acceptance. For the foreseeable future, NiMH and Li-ion are the dominating current and potential battery technologies for higher-functionality HEVs. Li-ion, currently at development and demonstration stages, offers attractive opportunities for improvements in performance and cost. Supercapacitors may be considered for pulse power applications. Aside from cell technologies, attention to the issue of system integration of the battery into the powertrain and vehicle is growing. Opportunities and challenges for potential “battery pack” system suppliers are discussed.