A123 Systems (AONE) is announcing some good news along with its earnings report today. They are going to be developing lithium ion battery systems for a joint venture project between Navistar (NAV) and Modec to develop commercial electric vehicles. The batteries for the Navistar EV will be manufactured in Michigan with the vehicles being assembled in Indiana for a launch sometime this year.
These commercial EV’s will be designed for frequent stops, have a carrying capacity of two tons and feature a range of about 100 miles on a single charge. Navistar received nearly $40 million in stimulus funds last summer to help build the vehicles and the company hopes to build 400 of them this year, ramping up to a few thousand per year in the years to come.
A123 Systems VP Jason Forcier commented: “A123 is proud to partner with Navistar on an electric vehicle that will reduce operating emissions in urban areas. Our ability to achieve impressive range with a battery that is safe, durable and reliable is a natural fit for Navistar’s electric vehicle program, and we are thrilled to showcase the U.S. advancements in the electrification of commercial transportation in Navistar’s vehicles.”