Better quality components for rechargeable lithium batteries were investigated to improve battery power and lifetime. New electrolyte gels, cathode and anode materials and preparation techniques were developed. The resulting batteries showed greatly improved performance characteristics. These components are now part of further research to develop these batteries commercially. The project team successfully constructed batteries using the highly dispersed silica (HDS) gelled electrolyte that reached the performance targets set at the start of the project in terms of the stability of the electrolyte and the charging capacity. The cathode and anode materials were characterized and gave good performance results. Electrodes based on manganese were also considerably less expensive than comparable electrodes using cobalt or nickel materials. Rechargeable lithium polymer batteries have excellent commercial prospects in the short term for small-scale applications, which are already an existing market. Once the commercial production process has been developed for small batteries, opportunities for enlarging the market into large-scale batteries for powering vehicles may follow.