This paper studies new estimation method for state of charge (SOC) of the hybrid electric vehicle lithium battery using sliding mode observer. A simple R-C Lithium battery modeling technique is established and the errors caused by simple modeling was compensated by the sliding mode observer. The structure of the sliding mode observer is simple, but it shows robust control property against modeling errors and uncertainties. The performance of the system has been verified by the UUDS test. The test results of the proposed observer system shows robust tracking performance under real driving environments.