The Green Autos

Contract between 123 Systems and Navistar, Inc. to Produce Lithium Ion Battery Systems



On March 9th a control was announced between 123 Systems (Nasdaq:AONE) and Navistar Inc. (NYSE:NAV) to work jointing in the development of the lithium ion batteries that are commonly used in various types of electric vehiciles (EVs). This is a venture that Modec and Navistar are engaging in jointly for Navistar Modec Electric Vehicle Alliance. 123 Systems develops and manufactures advanced forms of Nanophosphate lithium batteries and systems for consumer markets, grid services, and for consumer transportation. Navistar, Inc. is known worldwide as a well known leader in commercial transportation. Subsidiaries of the company produce military and commercial vehicles that are an International brand, MaxxForce diesel engines, Monaco RV recreation vehicles, IC Bus commercial and school buses, and Workhorse chasis for step vans and motor homes. They are also a designer and manufacturer for a private label designer of SUV, van, and pickup truck diesel engines, as well as service parts for diesel engines.

As stated in the agreement between the two companies, it is expected that the battery systems that are developed by A 123 for the EVs of Navistar, will be produced in A 123’s facility that is located in Livonia, Michigan, that is planned to open this month. Rather than choosing to convert an existing model of a truck that is powered by fossil fuel, Navistar’s electric vehicle has been built specifically for the use of electric power. This vehicle features zero tailpipe emission, which has the potential to cause a reduction of greenhouse gas emissions by 10 tons per year, when it has been compared to diesel-powered automobiles that are equivalent.

The Navistar electric vehicle is expected to launch somewhere in the middle of 2010, and the assembly for the vehicle will occur in Wakarusa, Indiana. This automobile has a two ton payload capacity, and the GVW or Gross Vehicle Weight is 12,1000 pounds.

Vice President of A 123 Systems Automotive Solutions Group, Jason Forcier, has made the statement that “A123 is proud to partner with Navistar on an electric vehicle that will reduce operating emissions in urban areas. Forcier also stated, “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.”

In using the battery pack manufactured by A 123 Systems, it will enable the electric vehicle of Navistar to have the ability to stay charged for a distance of approximately 100 miles, before individuals will have to worry about recharging the battery pack. Although the charge rate of the battery has been made for a rapid charge, this is a feature that is greatly dependent on the specific type of power source that is used for charging the system.

General Manager of Navistar’s electric vehicles, Shane Terblanche, felt confident in stating that “Navistar is a proven leader in worldwide commercial transportation and by introducing an electric vehicle into our offering, we are proud to offer our customers an alternative that will have a positive impact on the environment and reduce our nation’s dependence on foreign oil.”



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