CHRYSLER PICKS U.S. BATTERY MAKER

Chrysler picks A123 Systems Inc. to develop battery system
Ryan Beene, April 6, 2009 (Crain’s Detroit Business)

"Advanced battery supplier A123 Systems Inc. was tapped to develop and supply battery systems for Chrysler L.L.C.’s first-generation ENVI electric and plug-in hybrid vehicles.

"A123 Systems, based near Boston, Mass., plans to supply Chrysler with Nanophosphate Lithium ion battery cells, modules and battery packs from a plant in Southeast Michigan, which is still in the planning stages…"

click to enlarge

"The formal supply agreement announcement between Chrysler and A123 comes after the companies have been working together for roughly three years…Chrysler had also been working with other advanced battery suppliers during that time…but A123 will supply the first generation of vehicles from Chrysler’s ENVI electric car division.

"Five ENVI vehicles were unveiled at the North American International Auto Show in January. Plug-in electric versions of Chrysler’s Town and Country minivan, Jeep Wrangler SUV and Jeep Patriot SUV were showcased, as were the Dodge EV, an all-electric sports coupe developed with Lotus, and the Chrysler 200C, a plug-in electric concept sedan."

The Chrysler ENVI vehicles. (click to enlarge)

"Selecting a battery supplier is a major step for the embattled Chrysler to meet its goal of having the first ENVI vehicles come to market in 2010…A123 has yet to disclose where its planned battery plant will be located…[T]he Michigan plant will be the first in a national network of advanced battery manufacturing operations. At full capacity, the network is expected to produce enough battery systems for five million hybrid-electric vehicles or 500,000 plug-in hybrids by 2013.

"A123 has already applied for $1.84 billion in loans under the U.S. Department of Energy’s Advanced Technology Vehicles Manufacturing Incentive Program…"