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This paper introduces design, control, and power management of a battery/ ultra-capacitor hybrid system, utilized for small electric vehicles (EV). The batteries are designed and controlled to work as the main energy storage source of the vehicle, supplying average power to the load; and the ultra-capacitors are used to meet the peak power demands during transients. Power management system determines the directions of power flow, according to load demand. Presented analyses validate the efficient power management methodology.