Chrysler to use A123 cells in its electric vehicles

Click above for a high-res gallery of the Dodge Circuit EV
Chrysler has just announced that it has signed an official agreement to use battery packs from A123 in its planned electric vehicles and extended-range electric vehicles. This isn't a shocking revelation by any means, considering that the ENVI vehicles have been fitted with cells from A123 all along. The automaker highlights the fact that A123 is an American company – an important bit of information for a country that's looking to reduce its dependence on foreign sources of energy and reduce greenhouse gas emissions.
A123 has announced plans to build a plant in Michigan that would manufacture the Nanophosphate lithium ion prismatic battery cells, modules, and battery packs for use in Chrysler's eco-friendly vehicles. We expect the first Chrysler ENVI vehicle to be the Dodge Circuit, which is scheduled for a 2010 introduction. Chrysler has also shown electric versions of its current minivan platform along with the Wrangler and Patriot from Jeep. Click past the break for the full press release.
Gallery: Dodge Circuit EV
[Source: Chrysler]
PRESS RELEASE:
Chrysler LLC Forms Strategic Alliance with A123Systems for ENVI Electric Vehicle Lineup
A123Systems to Supply Michigan-made Lithium-ion Battery
AUBURN HILLS, Mich., April 6 /PRNewswire/ --
* Chrysler LLC signs agreement with A123Systems, a U.S.-based battery supplier, for advance 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
* Partnership reinforces both companies' commitment to expand battery manufacturing technology in the United States, reducing dependency on foreign sources of energy and greenhouse gas emissions
Chrysler LLC today announced one of its strategic partners and production battery supplier for the company's first production electric vehicles. Chrysler LLC and A123Systems have signed an agreement stating that A123Systems will supply energy storage systems for Chrysler's first-generation ENVI Range-extended Electric Vehicles and battery only Electric Vehicles. A123Systems is an American battery supplier with plans for a Michigan-based production facility.
"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."
"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."
The heart of ENVI's battery system is a scalable battery module, as demonstrated in ENVI's five electric-drive vehicles showcased at the 2009 North American International Auto Show in Detroit. The five vehicles included the Dodge Circuit EV, Jeep(R) Wrangler EV, Jeep Patriot EV, Chrysler Town & Country EV and the Chrysler 200C EV concept. At the reveal, 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 and flexible energy storage solution. This strategy is integrated in all of Chrysler's upcoming electric-drive vehicles, helping increase production volumes of the shared battery cell and shared battery module. Chrysler's approach reduces development time, investment, and overall battery system cost by combining the economics of high-volume component sharing without sacrificing the battery pack flexibility needed to develop a wide range of customer-driven electric-drive vehicles.
"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."
A123Systems advanced lithium-ion battery chemistry has the capability of meeting consumer demands for performance, driving range, and durability. A123Systems is currently planning a site in Michigan where it will manufacture Nanophosphate Lithium ion prismatic battery cells, modules, and battery packs for Chrysler LLC.
"Chrysler has successfully worked with A123Systems, both directly and through USCAR, for more than 3 years to improve the technology for automotive applications," said Lou Rhodes, Vice President-Advanced Vehicle Engineering and President of ENVI. "We have confidence that by partnering with A123Systems our near-term and long-term electrification goals will be met."
"Government and society are calling for the introduction of a variety of advanced propulsion vehicles," said John Bozzella, Senior Vice President-External Affairs and Public Policy, Chrysler LLC. "This partnership with A123Systems signifies Chrysler's commitment to contribute to our nation's goal of reducing dependence on foreign sources of energy, and reducing greenhouse gas emissions. Chrysler's partnership with A123Systems represents a win-win-win for the American consumer, American manufacturing and the environment."
ENVI -- letters that represent the first four letters of environment -- is Chrysler LLC's entrepreneurial in-house organization focused on electric-drive production vehicles and related advanced technologies. ENVI is a cross-functional, nimble team empowered to move quickly and access vast resources within Chrysler LLC in order to integrate electric-vehicle technology into existing products.
"With ENVI-powered electric vehicles, Chrysler LLC is inspiring a personal mobility revolution, creating a new generation of responsible, no-compromise Chrysler, Dodge and Jeep vehicles," said Klegon.
Reader Comments (Page 1 of 1)
polo 6:57PM (4/06/2009)
"The automaker highlights the fact that A123 is an American company – an important bit of information for a country that's looking to reduce its dependence on foreign sources of energy and reduce greenhouse gas emissions."
The source of the batteries is about as relevant (to reducing dependence on foreign energy sources) as the source for the headlights.
It doesn't matter whether the batteries come from a foreign or domestic source because the electricity to power the battery will be produced domestically. The fact that it is an EV is much more significant than the particulars about country of origin for the batteries. For EVs we need to find the cheapest source for the batteries (foreign or domestic), because only when prices go down will EVs be widely adopted, and then our dependence on foreign energy sources will go down. The only importance in choosing an American company is they are supporting American jobs, and are in a sense investing in their own potential future customers.
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Evie Futura 9:41PM (4/06/2009)
They were posing about the US company thing, A123 is trying to get a billion dollar grant while chrysler is trying to get many more. Private equity and venture sharks are involved in these two.
By any analysis over the last year I have seen Chrysler was weak player in the electric game, notice they include no forecast figures, they are playing to congress and pr not a real profitable market.
So the country thing does matter, because it means they are positioning with the flag and apple pie to get billions for a company with no production in the US (A123) and a company with a very unremarkable electric program.
evie futura 3:33PM (4/06/2009)
Chryslers activity in electric cars is second rate. Now how many cars are they forecasting to sell with A123 batteries? How about very, very few. The press release makes it seem like a big deal while they both angle for billions through Congress. Meanwhile back at the ranch neither are selling much in terms of electric vehicles. It is the smoke and mirrors show, hey we published some good press releases, now give us billions. Chrysler will say anything to get government money, their private equity (the actual owners) sharks don't want to give them any
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PeterG 4:30PM (4/06/2009)
Message to Fiat: Run Away! Then In twenty days or so, we can finally shut down the final busy arm of Chrysler (The Press Release writers).
The Chrysler Circuit (AKA Tesla Roadster clone) is going nowhere even if Chrysler were to survive by some miracle. The Tesla Roadster is built using a cheaper Lotus platform (Elise vs Europa), cheaper batteries (commodity laptops vs A123) and it cost over $100 000 and makes practically no money at that level.
So the Circuit would probably be $150 000+ and making no money. Chrysler has done zero production engineering on this. It is just demo car, bailout bait that thankfully no one seems to be biting on.
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Chris M 8:17PM (4/08/2009)
Your analysis of the Dodge Circuit is a bit off. With a range less than the Tesla roadster (160 vs 244) it is using a smaller A123 battery pack. With slower acceleration, it is also a bit heavier, due to using steel and aluminum rather than the ultralight but expensive carbon fiber in the Tesla.
The result would be a car that doesn't perform as well as a Tesla Roadster, but selling for several thousand dollars less than the Roadster. I imagine that there would be quite a market for those who would like a fast green car but can't quite afford a Tesla.
I agree about warning Fiat, though.
PeterG 9:09AM (4/09/2009)
Disagree. A123 are twice as expensive as commodity laptop batteries. The slightly smaller pack size won't compensate for. The Europa platform is more expensive than the Elise platform.
I forgot about Telsa carbon fiber. Use of Carbon fiber will offset somewhat, but this would still be a 100K + car.
This might as well be a discussion about what kind of car the easter bunny drives. This car won't be coming from Chrysler in this reality.
RyanD1981 10:24AM (4/07/2009)
Hate, hate, hate. Is that all you people can do?
A123 is used in the Killacycle, White Zombie, Dewalt power tools and RC cars and planes.
Chrysler still has the most electric vehicles sold to date through its GEM division. ENVI was started in 2005, and Chrysler had the TEV and EPIC Vans back in the late '90s. They are not as big of strangers to EV's as you people let on.
Do I like the loan situation, no. But if A123 can preserve or create new jobs in the states, fine. Chrylser was placed in horrible shape to years of Daimler servitude. Personally, I would love to make Robert Eaton pay for Chrysler's loan.
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Evie 3:36PM (4/08/2009)
You miss the point, the point being they are asking for billions from other people to be deployed by the government, on what basis.
Gem were golf carts bought to beat the cafe rules, none are using advanced lithium, ask where they would be priced if they were.
It is not hate, it is rigorous analysis, and something the EV community oftentimes does not want to see applied. Get into numbers Ryan, not generalizations.
A123, zip in evs so far. Chrysler a second tier electric vehicle company outside the golf cart division. Put your money up if you are so sure they have the right formula
PeterG 9:15AM (4/09/2009)
No hate for A123. They have great batteries . But they have to get those prices into competitive area. Isn't BYD producing similar chemistry for much cheaper?
Hate for Chryslers Con game here. YES. This is BS. They aren't bringing a Tesla Roadster clone to market at an affordable price. That is complete nonsense. The had Lotus munge an EV drivetrain in a Lotus Europa and tada: Bailout bait....
Bobmarley 8:59AM (4/07/2009)
Does A123 still make battery packs for Dewalt? The electric RC guys like to harvest the cells.
Maybe traxxas (the RC company) can help Chrysler build a life size RC car/EV....im pretty sure they are farther ahead than chrysler in the EV R&D department
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Evie 3:39PM (4/08/2009)
You miss the point, the point being they are asking for billions from other people to be deployed by the government, on what basis.
Gem were golf carts bought to beat the cafe rules, none are using advanced lithium, ask where they would be priced if they were.
It is not hate, it is rigorous analysis, and something the EV community oftentimes does not want to see applied. Get into numbers Ryan, not generalizations.
A123, zip in evs so far. Chrysler a second tier electric vehicle company outside the golf cart division. Put your money up if you are so sure they have the right formula
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RyanD1981 6:01PM (4/08/2009)
I am into numbers, whether you believe that or not. And I don't like the gov't getting into private business. I think A123 could use far less money and use the Chrysler plants to build the batteries instead of making their own plant. If I had money to put up, maybe I would! But I don't. Do you?
A123's in zip EV's so far? So you haven't heard of the Killacycle? Or Plasma Boy racing's White Zombie? They are both using A123's, and setting records. The GEM's don't need Lithium. Their range and use don't call for it, and lead acid batteries are more available and lower cost than Lithium batteries, it's simply easier for the owners to replace them.
You didn't put up any numbers, either, nor is your analysis of Chrysler's history with EV's rigorous.
Evie 10:28AM (4/09/2009)
well the killacycle is an experiment as I mentioned as is the white zombie until those are priced to market and sold competitively. So basically neither have any proof of viability economically, technically they prove the technology has merit, but at what price?
There are twenty companies in the advanced battery market trying to have a go, they all want government money, as they cannot get money for production facilities in the US outside of the government (A123 has tried).
I think the Gems are fine for what they are, but not as proof of anything related to lithium. It is impossible to prove the negative, there are no economically sold lithium powered fully electric autos at present to my knowledge.
Now Tesla may sell a few hundred at 100k apiece, Gem may sell 10k lead acid to public works departments, but the vast middle is an unproven economic case.
Now the interview I would like to see you do, is a drill down on department of energy pricing estimations for advanced lithium power from a variety of manufacturers measuring the kw hour comparisons. When that number hits the sweet spot then billions spent might not be wasted
So yes I understand the numbers of 50k plus gems sold to date, or the estimate that lithium is currently about 3x the price for mainstream adoption by department of energy analysis, or that hybrids are believed to have offered almost no profits, and only done ok for Toyota.
It is the public's billions, and I really don't like the government making company specific policies or designations. Back to the point on money, yes I put a great deal into the developing electric ecosystem, but I want the public money treated as only right to be applied to something obviously right, and in pure electric from A123 and Chrysler that is not obviously the case.
Chrysler may be gone in a few months, A123 may be leapfrogged by several technologies, what is government supposed to fund both of them for?
RyanD1981 10:57AM (4/09/2009)
I don't' like gov't interference in business. Some things not stated however are what branch of gov't A123 is trying to get loans or grants from. DOE would make sense, but not TARP. Yes I understand it comes from the same source. A123 could be leapfrogged in a couple of years. If the plant is running, and depending on what the manufacturing for the new chemistry is like, they may not have to change much to manufacture the next great battery chemistry. If I was a reporter, maybe I could get that interview with DOE, alas, I am not.
1.84 billion is a lot, but there is no breakdown of costs, so it's hard to justify if the cost is outrageous. They have to build the plant at x dollars, get the machinery at $y, get certified at $z, get raw materials at $w, and various expenses like getting people in, getting them paid, utilities, etc. Perhaps they are looking at bleak economic landscape and hedging their bets it may not get better for a year and are requesting that money top cover costs for a year out. I don't know.
Chrysler was left in a horrible financial status and walked into a perfect storm of recession. I want them, and GM, to succeed. I would prefer they could stand on their own. Should gov't fund both Chrysler and A123 at the same time? That depends on who you are. Perhaps the ENVI division itself should be funded as a JV. As for Peter G's comment about not bringing the "Tesla clone" out at a an affordable price, Tesla is not bringing the Roadster out at an affordable price!
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