Chrysler and GM Pick Battery Suppliers

Apr 7

Written by: Aaron Turpen   462 views    

Published on April 7th, 2009 in Electric Cars

In announcements that surprised no one, both Chrysler and General Motors have announced their battery suppliers for plugins and electrics. One announcement was made in the usual on-screen handshake and press release and the other was made amidst heavy fanfare and money-wasting jubilee.  One guess as to which was which.

Chrysler and A123

In the usual press conference followed by a published press release, Chrysler announced that it would be staying in America for its batteries, choosing Massachussets-based A123 Systems to provide battery packs for its hybrids and battery-only vehicles. A123 followed suit by announcing the planned opening of a production facility in Michigan to fill Chrysler’s needs.

Chrysler has five EV models planned, the first of which will appear next year, and several other plug-in hybrids (PHEV) plans as well–also beginning to appear in the 2010 model year.  A123 has applied for $1.84 billion in federal loans through the Department of Energy’s loan program for alternative vehicle manufacturers and suppliers.

This partnership is still just paper, however, since A123 does not actually have the facilities to build the batteries Chrysler will need over the next five years. Domestically, A123 only has research facilities, but with or without the loans, the company says they will be able to meet demands–the loans will just be needed for domestic production facilities.

GM & LG Chem

In Detroit, General Motors rolled out the now-ubiquitous T-shaped battery pack for the Chevy Volt and threw a party to announce their teaming up with LG Chem. The choice was no surprise, though the competition was fierce between the two battery suppliers considered (the other was A123).  LG won out thanks to their current production ability, which is mainly in Korea.

LG has promised to build a new manufacturing plant in Michigan, though that plant would actually be owned by GM and be used for several other EV-related assemblies as well. It’s likely that the cells would still be made in Korea and then assembled into the whole battery pack and related items in the U.S.

The much-pimped Volt was the focus of the press conference, although GM also recently announced that the car would lose money indefinitely.

Sources: 1, 2

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