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The auto industry already produces literally tens of millions of batteries every year (every car has one). The cost of higher performance batteries has more to do with the cost of the materials and the work required in the process to make them. Scaling that up has already improved that fairly far (see laptop batteries) but without a major, major improvement in the amount of energy stored per square inch, combined with the cost of that square inch, things won't move. There has not been any serious level breakthrus in batteries in quite a while.
Electric power (especially from coal or natural gas) is a real problem. The conversion process at the generating plant is often pretty high (you can run constantly at the best performance levels), but it is often defeated by the distribution "pumping" losses. The number (according to wikipedia) is 7.4%. Combine that with the losses in storage (batteries don't retain a full charge, it fades away over time, and some of the energy applied isn't retained), losses in conversion to motion (what gets lost in running an electric motor setup), etc.
The true advantages in an electric car comes from an area like I am in (Quebec) that has huge hydroelectric projects and the potential for many more - that is converting a natural process (water falling down) into electricit. It is pretty much a renewable resource. That is when electric cars start to look good.
Yes, the oils companies have huge vested interests and very well paid people to make sure things stay the status quo. With rising gas prices, it is getting closer and close to making many alternate energy sources and techniques viable. At $100 a barrel for oil, many alternatives become not only cleaner but infact more economical.
Until that happens, hybrid is the best way to save a little bit of the planet
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