In a gleaming white factory here, Bob Peters was gently feeding sheets of chemical-coated foil one afternoon recently into a whirring machine that cut them into precise rectangles. It was an early step in building a new kind of battery, one smaller than a cereal box but with almost as much energy as the kind in a conventional automobile.
The goal of Mr. Peters, 51, and his co-workers at International Battery, a high-tech start-up, is industrial revolution. Racing against other companies around the globe, they are on the front lines of an effort to build smaller, lighter, more powerful batteries that could help transform the American energy economy by replacing gasoline in cars and making windmills and solar cells easier to integrate into the power grid.
This summer the Obama administration plans to announce how it will distribute some $2 billion in stimulus grants to companies that make such advanced batteries for hybrid or all-electric vehicles and related components. International Battery is vying for a modest chunk of it.
The hope is that the grants will spur far higher levels of experimentation and production, pushing down the costs that have prevented these batteries from entering the mass market.
The batteries would not only replace the fuel tanks in millions of cars and trucks, but would also make windmills and solar cells more practical, by absorbing excess energy when their production jumps and giving it back when the wind suddenly dies or the sun goes behind a cloud.
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