Last year Rolls-Royce CEO Tom Purves hinted that the luxury automaker might introduce an electric car, but now a source inside the company has confirmed that an electric version of their flagship Phantom is planned for late 2010. This will give them plenty of time before the 2012 London Olympics to get things rolling.

While the Tesla has already dispelled the notion that electric cars are little more that glorified golf carts, an electric Rolls-Royce probably sounds pretty absurd at first. But if you think about it, this move actually makes sense on several levels. Most Phantoms are used for short trips by people who want to be noticed arriving at the latest swanky restaurant or club, so the limited range is not likely to be a big problem. Add to that, the huge torque which will allow the electric Phantom to whisk its occupants away in near silence, and I can see this having broad appeal for some of the more extroverted members of the glitterati. Best of all, they can even claim that their new luxury ride is all about saving the planet.

No word yet on cost, but expect it to be somewhat more than the current gas powered version's $380,000 price tag.

Autocar.co.uk, via TreeHugger.com