The battery of an electric-vehicle accounts for half of the production cost for an electric vehicle; a reason why zero-emission plug-in hybrids won’t come at a cheap price. Nonetheless, Mitsubishi is working hard to reduce the cost of their electric-cars by as much as possible.

According to a report by Nikkei, Mitsubishi is planning a relatively cheap 3 million yen ($31,400 USD) electric-vehicle by 2012. The car will be based on the i MiEV but will have a smaller battery.

Mitsubishi’s i MiEV will go on sale in Japan next month with a monthly lease process. Starting April 2010, Mitsubishi will begin taking official orders from individuals with prices starting at 4,380,000 yen ($44,714 USD).

After the cheaper version hits the markets, Mitsubishi hopes to sell more than 30,000 electric cars by fiscal 2013.

Mitsubishi i MiEV:

- By: Kap Shah

Source: MarketWatch