A123Systems and Chrysler LLC have announced that A123Systems will supply Nanophosphate™ Lithium ion prismatic battery cells, and jointly developed battery modules and battery packs for Chrysler’s Range-extended Electric Vehicle and battery only Electric Vehicle production programs. Five vehicle designs have been announced with Chrysler hoping to have two vehicles ready in 2010.
Since Chrysler’s current finances are quite shaky having A123Systems develop the batteries and supply them as complete systems reduces Chrysler’s costs and does allow A123Systems to sell them to other companies if Chrysler fails.
A123Systems is currently planning a site in Michigan where it will manufacture the battery cells, modules, and battery packs for Chrysler. It has applied for $1.84 billion in loans from Department of Energy’s Advanced Technology Vehicles Manufacturing Incentive Program to finance the plant.
Update: April 13, 2009
A123Systems has announced it has raised a further $69 million in cpatial, including a further $15 million from General Electric. This brings GE's total investment to $70 million.