I have a wheel with a schmidt hub. There are no batteries involved at all; my legs provide the power to the generator hub which then powers the lights. The invention of LED's makes this whole generator hub thing even better because they are so bright.
Shimano makes a generator hub too, but I understand the best is the Schmidt hub.



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I got the hub version - they are more efficient. (I have a rim one on the Gazelle... and I don't exactly notice much difference but the bike's so heavy it's beside the point 