A123 to develop battery pack for Shanghai Automotive Industry Corporation

Massachusetts-based lithium ion battery developer A123 Systems is set to develop battery packs for a new electric passenger car made by the largest automaker in China, Shanghai Automotive Industry Corporation (SAIC).

The two companies have signed a letter of intent regarding the battery development for the new vehicle model, which is due in 2012.

Under the agreement, A123 will use its proprietary cells to create a customised battery pack that it will provide to Advanced Traction Battery Systems, a joint production venture established by the pair.

SAIC was the first Chinese automaker to form a joint venture with a non-Chinese company, when it set up the joint venture with A123 to develop, manufacture and sell traction battery systems to the domestic market.

The Chinese vehicle manufacturer also plans to partner with A123 Systems to develop similar systems for its future electric vehicles.

‘A123′s advanced battery systems deliver increased safety, extended life and exceptional overall performance, which is why we have selected them for our new electric passenger car as well as for several of our other energy-efficient vehicles in development,’ said Dr Jun Zhu, general manager for new energy vehicles, SAIC.

A123 already supplies battery technology for other electric drive-train vehicles under development by SAIC, including the Roewe 750 hybrid electric sedan and the Roewe 550 plug-in hybrid electric sedan.

‘We remain committed to producing a complete line of automobiles to support the government’s new energy vehicle initiative, and we expect to continue to expand our partnership with A123 and ATBS as key suppliers for current and future programmes,’ said Zhu.

A123′s growing list of transportation customers includes BAE, Eaton, Fisker Automotive, Navistar and other global automakers and heavy-duty vehicle manufacturers. The nine-year-old company has also shipped more than 30MW of its smart grid stabilisation systems to customers worldwide.

‘Chinese government officials recently forecasted that the country’s annual production of electric vehicles could reach one million units by 2020,’ said Jason Forcier, vice president of the Automotive Solutions Group at A123 Systems.