Mr. Ofer has his eye on China, with its increasing car penetration, oil consumption and environmental pollution, where he has interest from a Chinese car company, Chery, for a similar joint venture.

Renault will offer a small number of electric models of existing vehicles, like the Megane sedan, at prices roughly comparable to gasoline models. The batteries will come from Mr. Agassi. The tax breaks for “clean” electric vehicles, which Israel promises to keep until at least 2015, will make the cars cheaper to consumers than gasoline-engine cars. “You’ll be able to get a nice, high-end car at a price roughly half that of the gasoline model today,” Mr. Agassi said.

He contends that operating expenses will be half of those for gasoline-driven vehicles, especially in Europe and Israel, where gasoline taxes are high. The company, and the consumers who use it, will normally recharge their batteries at night, when the electricity is cheapest, and they expect the batteries to have a life of 7,000 charges, though Mr. Agassi says he is counting on only 1,500 charges, which is roughly 150,000 miles, the life of the average car.

“Because the price of gasoline fluctuates so much during the life of a car, it’s hard to predict the cost basis for driving,” Mr. Agassi said. “But electricity fluctuates less, and you can buy it in advance, so I can give you a guaranteed price per mile, cheaper than the price of gas today.”

Mr. Agassi predicts that a few thousand electric cars will be on Israeli roads in 2009 and 100,000 by the end of 2010; Israel has two million cars on the road, and about 10 percent are replaced each year.

Mr. Agassi suggested this model for the electric car  concentrating on infrastructure rather than on car production  at a 2006 meeting of the Saban Forum of the Brookings Institution, which Mr. Peres attended. He was enthralled by the idea.

Mr. Peres, who is sometimes dismissed as a dreamer by more cynical Israelis, has in the past embraced and helped to develop some successful notions  like Israel’s nuclear weapons program. He is a strong believer in Israel’s mission to better the world, he says, and not simply sell arms to it. Israel is the 11th-largest arms exporter, as measured by dollar sales, according to the Stockholm International Peace Research Institute.