A123 battery plant in Michigan won’t depend on U.S. loans, thanks to… Chrysler

A123Systems, a U.S.-based battery supplier who recently formed a partnership with Chrysler, said that it will built its battery plant in Michigan even if it doesn’t receive federal loans. The battery supplier, who also worked on the batteries for the Chevrolet Volt, said that as a part of its contract to build “Nanophosphate” lithium-ion batteries for Chrysler’s future electric-vehicles, it will build a Michigan plant whether or not it receives support from the government.

“With the Chrysler agreement, A123 will definitely build a plant in Michigan,” the company’s chief marketing officer, Ric Fulop, told Automotive News.

Chrysler announced last week that A123Systems will be responsible for supplying it with batteries for the company’s first ENVI electric-car due out in 2010.

A123Systems has applied for a $1.84 billion loan from the U.S. Energy Department for multiple plants, first of which will be build in Michigan. With multiple plants, A123Systems says it could hire 14,000 additional employees to produce 5 million hybrid battery packs or half-million batteries for plug-in hybrid vehicles.

Chrysler 200C EV Concept:


– By: Omar Rana