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By admin, June 7, 2010 9:16 pm

Lithium-ion battery supplier A123 Systems said on Monday it agreed to provide lithium-ion battery systems for electric vehicles made by a joint venture of Navistar International Corp. and Modec Ltd. of the U.K.

A123’s shares gained 4.9% to $8.40 in after-hours trading. The stock has lost 64% this year.

A123 also has an agreement with industrial manufacturer Eaton Corp. to supply battery systems for a plug-in hybrid electric version of Ford Motor Co.’s medium-duty F550 truck. And it already makes batteries for hybrid buses made by Daimler AG and U.K. defense contractor BAE Systems.

According to the latest supply agreement, which builds on a development agreement announced in March, A123 will make battery systems for Navistar’s eStar electric delivery vehicle at its Livonia, Mich., plant. A number of vehicles have been shipped to FedEx Corp. as part of the development agreement. The work is partially funded by federal stimulus money, administered by the Department of Energy.

A123’s battery pack allows the Navistar electric vehicle to travel about 100 miles on pure electricity before needing to be recharged.

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By admin, March 9, 2010 9:08 pm

A123 Systems announced that they are developing lithium ion battery systems for a joint venture project between Navistar 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.”