Chrysler has taken a significant step towards electrification by partnering with A123Systems, a U.S.-based battery supplier. This collaboration aims to develop battery modules and packs for Chrysler's electric vehicle (EV) programs, potentially creating jobs and advancing technology within the United States.
In the midst of ongoing negotiations with Italian automaker Fiat, Chrysler has announced a pivotal agreement with A123Systems. This partnership is set to develop battery modules and packs for Chrysler's Range-extended Electric Vehicle (REEV) and battery-only Electric Vehicle (EV) production programs. The collaboration is expected to bolster Chrysler's position in the electric vehicle market.
One of the key aspects of this agreement is the commitment to produce the required battery units within the United States. This move is anticipated to create numerous jobs domestically, contrasting with the current trend of developing such technology overseas, particularly in countries like South Korea and Germany.
Frank Klegon, Executive Vice President of Product Development at Chrysler LLC, emphasized the importance of this partnership:
"This is a great example of two American companies working together to put cutting-edge technology on the road. 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."
Michigan Governor Jennifer M. Granholm highlighted the broader implications of this alliance:
"Chrysler's partnership with A123Systems marks a significant milestone at a critical time in the automotive industry and in the state of Michigan. This strategic alliance will result in two companies joining forces to develop and produce advanced technology in Michigan, creating new jobs, delivering benefits to consumers, and contributing significantly to bringing more environmentally friendly vehicles to market."
A123Systems is renowned for its advanced lithium-ion battery chemistry, which promises to meet consumer demands for performance, driving range, and durability. The company is planning to establish a manufacturing site in Michigan to produce Nanophosphate Lithium-ion prismatic battery cells, modules, and packs for Chrysler LLC.
ENVI, an acronym for "environment," represents Chrysler LLC's in-house organization dedicated to electric-drive production vehicles and related advanced technologies. This entrepreneurial team is designed to be agile and resourceful, leveraging Chrysler's vast resources to integrate electric-vehicle technology into existing products.
Chrysler has been showcasing various ENVI vehicles at auto shows across the United States since last fall. If the partnership with Fiat progresses smoothly, the ENVI program could see a rapid rollout.
Chrysler's partnership with A123Systems marks a significant milestone in the automotive industry's shift towards electrification. This collaboration not only aims to advance battery technology but also promises economic benefits through job creation and domestic production. As the electric vehicle market continues to grow, such strategic alliances will be crucial in driving innovation and sustainability.
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