The rumors have finally been confirmed. Mini has manufactured, and is going to publicly unveil next month at the Los Angeles auto show, their new ‘Mini E’ model. It’s got a purely electric drive which relies on advanced lithium-ion battery packs, which are charged through an electric plug found in place of the gas filler neck.

The E, which borrows its look from the classic Mini Cooper and Cooper S models, is going to be released in a limited number of 500 units, to be leased to select customers in Los Angeles, New York and New Jersey. Inside sources hint that BMW, who owns the Mini brand, is already considering expanding its sales to other cities like London and Munich. If so, the production may rise to about 1,000 units.

The E’s electric motor is mounted in the front under the hood, and has 204 horsepower and 162 lb-ft of torque. It drives the front wheels directly using a single-stage helical gearbox, and draws its energy from the battery pack where the Mini’s rear seats would usually be, forcing the E to become a two-seater.

The pack also increases the E’s curb weight to about 3,223 pounds, 572 of which are in the battery pack alone. Nevertheless, it will accelerate to 62 mph in 8.5 seconds, according to Mini. Being a car designed primarily for the city, its top speed has been limited to 95 mph in order to conserve energy. It will travel 4.4 miles per kilowatt-hour, which translates to 150 miles per recharge. One recharge takes about 8 hours. Mini says it will have the same agile handling its more conventional cousins are known for.

The E will be leased for one year, with an extension option, starting mid-2009, around the same time other car manufacturers such as General Motors Corp., Toyota Motor Corp. and Chrysler LLC are hoping to launch their own electric vehicles.