Chrysler Lines Up Electric Battery Supplier

Despite being knee deep in negotiations with Italian automaker, Fiat, Chrysler has announced that it has signed an agreement with A123Systems, a U.S.-based battery supplier. That agreement will allow Chrysler and A123Systems to develop battery modules and battery packs for Chrysler's Range-extended Electric Vehicle and battery only Electric Vehicle production programs.

The Chrysler program will also contribute to the creation of jobs in the US as both companies agreed that production of the required units be completed stateside. Right now, most of the technology is being developed overseas, particularly in South Korea and Germany.

"This is a great example of two American companies working together to put cutting-edge technology on the road," said Frank Klegon, Executive Vice President-Product Development, Chrysler LLC. "The most significant challenge to electric vehicles is battery technology. The diligent selection of strategic partners like A123Systems helps Chrysler achieve its leadership in electric-drive systems and vehicles."

"Chrysler's partnership with A123Systems marks a significant milestone at a critical time in the automotive industry and in the state of Michigan," said Michigan Governor Jennifer M. Granholm. "This strategic alliance that will result in two companies joining forces to develop and produce advanced technology in Michigan will create new jobs in the state, deliver benefits to consumers and contribute significantly to bringing more environmentally friendly vehicles to market."

According to A123Systems, the company's advanced lithium-ion battery chemistry has the capability of meeting consumer demands for performance, driving range, and durability. A123Systems is currently planning a site in Michigan where it will manufacture Nanophosphate Lithium ion prismatic battery cells, modules, and battery packs for Chrysler LLC.

ENVI -- letters that represent the first four letters of environment -- is Chrysler LLC's entrepreneurial in-house organization focused on electric-drive production vehicles and related advanced technologies. ENVI is a cross-functional, nimble team empowered to move quickly and access vast resources within Chrysler LLC in order to integrate electric-vehicle technology into existing products.

Chrysler has been showcasing a number of ENVI vehicles at auto shows across the US since last fall. If the automaker is able to make a go of its relationship with Fiat, the ENVI program could be rolled out quickly.