Current Priuses use nickel metal hydride batteries, but for its plug-in vehicles Toyota plans to use lithium ion batteries developed and made through a joint venture with Panasonic.
The plug-in hybrid cars from Toyota will be able to go between 12 and 18 miles on a battery charge alone, according to the paper, which Reuters cited.
There will be a wave of plug-in electric sedans coming to market over the next two years. In addition to a plug-in Prius, Toyota is making an all-electric city car called the FT-EV, which is expected in 2012.
The highly anticipated 2011 Chevy Volt is scheduled to go into production in late 2010. Unlike a traditional hybrid, the Volt will run entirely off its batteries and use the internal combustion engine to charge the battery for rides longer than 40 miles.