Automaker Ford has confirmed that the company has teamed up with the University of Michigan to open a new battery research lab to speed up development of future electric vehicles.

Ford said the University of Michigan has world-class facilities, which allows the company to collaborate with battery cell manufacturers, suppliers, university researchers and start-ups to initially test new battery concepts on a small scale. The concept may go in full production once the battery is finalized.

"We have battery labs that test and validate production-ready batteries, but that is too late in the development process for us to get our first look," said Ted Miller, who manages battery research for Ford. "This lab will give us a stepping-stone between the research lab and the production environment, and a chance to have input much earlier in the development process. This is sorely needed, and no one else in the auto industry has anything like it."

On Monday, a new lab opened in the University of Michigan, costing $8 million. The lab is expected to develop batteries that are smaller, lighter and less expensive to produce. The work at the new lab means that the development of battery-powered vehicles may speed up and yield more efficient and affordable batteries than what is used in current electric vehicles.

Ford has been assisting battery research for vehicles for more than 20 years. In 2012, the automaker had invested $135 million in design, engineering and production of key battery components, which doubled the company's battery testing capabilities.

Miller adds that battery development still needs a lot of research before small scale batteries tested in labs can be send for full scale production without compromising the test results.

Electric cars have still not gained high popularity within the buyer's circle and also have been slow to take off. They made up to less than one percent of U.S. auto sales in 2012. However, hybrid cars, which cost more than regular cars, sell in larger numbers in the U.S.

With the ongoing research carried out by Ford and other automakers, the production cost of batteries may come down, which will bring down the cost of hybrids and electric cars and may also increase their popularity within buyers.