HOUSTON — The U.S. lags far behind Asian countries in developing lithium ion battery technology for hybrid electric cars, forcing auto makers to depend on overseas technology and manufacturing as they try to sell more of the alternative fuel vehicles.

Every major U.S. automaker will have a hybrid vehicle model available on the market by 2012. But even as crude oil prices spike past $100 a barrel, the high cost of lithium batteries in the U.S. will force companies like General Motors (GM) and Ford Motors (F) to maintain a higher price, undercutting competitiveness.

Hybrid vehicles use engines powered by electricity and gasoline to achieve higher fuel efficiency. The vehicles could drastically cut gasoline demand in the U.S. if they win widespread popularity, but the high cost of batteries–the most expensive part of a hybrid vehicle–keep their sales price high.

But GM, Ford and other U.S. auto manufacturers are at a disadvantage in growing their hybrid sales because they depend on importing batteries or licensing technology from China, Japan and other Asian countries that dominate lithium ion battery technology and production, said Menahem Anderman, president of research firm Advance Automotive Batteries.

‘If there is a battery race, the U.S. is number four, behind […]