Chrysler, A123Systems Form EV Strategic Alliance

Chrysler has just announced the signing of a new strategic alliance with A123Systems, a US-based battery supplier that would provide advanced battery systems for Chrysler's future electric cars and hybrid models.

Chrysler is now facing a 30-day deadline to revise its survival plan and complete the alliance with Italian manufacturer Fiat. Nevertheless, today's strategic agreement helps the American automaker pursue its efforts into the green car sector and develop new technologies that could help it comply with the government requirements.

"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."

Basically, A123Systems will supply advanced lithium-ion batteries to Chrysler in order to improve the overall range of future electric cars and hybrids produced by the American company. Details are pretty scarce at this time, as no official working for one of the two manufacturers revealed the models to benefit from these battery systems.

"We're very proud to have been selected to supply advanced battery systems for Chrysler's family of ENVI electric-drive vehicles," said David Vieau, President and CEO of A123Systems. "This bold move by Chrysler changes the game and greatly improves our country's ability to modernize our transportation fleet. We're confident that our collaboration with Chrysler will serve as proof that American innovation is alive and well and ready to lead the new global market for fuel-efficient electric vehicles."

A thing worth mentioning is that A123Systems is also considering building a production facility in Michigan in order to produce Nanophosphate lithium-ion prismatic battery cells, modules, and battery packs for Chrysler LLC.

"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."
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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