Chrysler LLC today announced that A123Systems will supply lithium-ion batteries for its
first-generation of electric vehicles expected to go on sale in 2010.
A123Systems is an American battery supplier that has applied for $1.84 billion in federal funds to support the construction of manufacturing facilities, beginning with one in southeast Michigan.
Under the agreement, A123Systems will manufacture battery cells, modules and packs.
The heart of ENVI's battery system is a scalable battery module, as demonstrated in ENVI's five electric-drive vehicles showcased at the 2009 North American International Auto Show in Detroit.
The five vehicles included the Dodge Circuit EV, Jeep® Wrangler EV, Jeep Patriot EV, Chrysler Town & Country EV and the Chrysler 200C EV concept.
"Chrysler has successfully worked with A123Systems, both directly and through USCAR, for more than 3 years to improve the technology for automotive applications," said Lou Rhodes, Vice President-Advanced Vehicle Engineering and President of ENVI. "We have confidence that by partnering with A123Systems our near-term and long-term electrification goals will be met."
In October, Chrysler killed production of its only hybrid vehicles, the Dodge Durango and Chrysler Aspen SUVs, which had only been on showroom floors for less than a month.
The company's ENVI vehicles will use internal combustion engines only for recharging batteries, not for propelling the vehicles--an engineering design that is more fuel efficient.
Chrysler's U.S. competitor General Motors (NYSE: GM) has chose South Korea's LG Chem Ltd (051910.KS) to manufacture lithiu-ion batteries for its electric vehicle--the Chevy Volt.
