The major factors that make ZEV affordable are the range and cost. The development of advanced batteries such as Ni-MH battery can solve the problem partly； on the hand the battery management system is an efficient way. Ni-MH battery and battery ECU is a key component influencing ZEV performance, such as range, acceleration and hill-climbing capability. Because most problems related to battery such as short circuit, over-discharge and overcharge occur easily during operation, it is necessary to develop a dedicated battery ECU for HEV. This paper proposes a new SOC algorithm for the HEV based on the terminal voltage and current integration. And battery ECU was designed and analyzed. Also, the validity is confirmed through experiment.