Auburn Hills, Michigan – A123Systems, an American battery supplier now in partnership with Chrysler LLC, has received a US$100 million tax grant from the Michigan Economic Development Corporation to build a full-scale battery manufacturing facility in the state.

The new plant will bring additional high-tech jobs to Michigan, and help Chrysler achieve its goals of electric vehicle development and production.

Last week, Chrysler announced that A123Systems will supply energy storage systems for the automaker’s first-generation EVI range-extended electric vehicles, and its battery-only electric vehicles. The heart of EVI’s battery system is a scalable battery module, demonstrated in five electric-drive vehicles showcased at the 2009 North American International Auto Show in Detroit. At that time, Chrysler announced its intention to bring the company’s first production electric vehicle to market in 2010.

Individual lithium ion prismatic cells are integrated with a proprietary battery management safety system to create an efficient, flexible energy storage unit. The strategy is integrated into all of Chrysler’s upcoming electric-drive vehicles, helping increase production volumes of the shared battery cell and shared battery module. The approach reduces development time, investment, and overall battery system cost.

A123Systems is currently planning a site in Michigan where it will manufacture nanophosphate lithium ion prismatic battery cells, modules and battery packs for Chrysler.

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