Chrysler LLC Forms Strategic Alliance with A123Systems for ENVI Electric Vehicle Lineup

		Chrysler's initial ENVI vehicles will use lithium ion batteries from A123Systems. (PRNewsFoto/Chrysler LLC) AUBURN HILLS, MI UNITED STATES

    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
    (Photo: http://www.newscom.com/cgi-bin/prnh/20090406/DE94674 )

    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.