We previously reported that Johnson-Controls Saft would be collaborating with Ford for a demonstration fleet of Ford Escape Hybrids. However, they’ve also signed a 5-year agreement with Ford to produce lithium-ion batteries for Ford’s first first series production plug-in hybrid electric vehicle. Ford expects to have these vehicles in production by 2012.  Under the terms of the agreement, Johnson Controls-Saft will initially deliver 5,000 units of these batteries in the first year, with targets expected to increase depending on consumer demand.

MotorAge quotes members of the leadership teams of both companies. Here’s what they had to say about the agreement:

"The battery is the critical piece of electrifying vehicles," says Nancy Gioia, director, Sustainable Mobility Technologies and Hybrid Vehicle Programs, Ford Motor Company. "Johnson Controls-Saft is one of the leaders focused on creating lithium-ion batteries for a new generation of personal transportation."

Mary Ann Wright, who leads the Johnson Controls-Saft joint venture and is Vice President and General Manager Hybrid Systems for Johnson Controls, said the partnership between Ford and Johnson Controls-Saft validates that the United States is positioned to be a leader in the development of hybrid and electric vehicles. "Ford and Johnson Controls are two long-standing U.S. companies committed to re-building our domestic manufacturing base and to the ongoing investment in critical technology for the United States."