A123 to supply batteries for Navistar electric truck

March 12, 2010

President Obama awarded tax credits to the Navistar-Modec project last August

Truck manufacturer Navistar has signed a deal to source batteries for its new commercial electric vehicle from Massachusetts-based A123 Systems.

A123 will produce lithium ion batteries for the Navistar Modec Electric Vehicle Alliance, a joint venture between Navistar and British company Modec.

The batteries will be produced at a new manufacturing facility that A123 is expecting to open later this month in Livonia, Michigan.

Navistar, which has its global HQ in Warrenville, Illinois, said its EV will be a purpose-built electric vehicle, which its manufacturer says will cut carbon emissions by 10 tons a year compared to an equivalent diesel-powered truck.

Assembled in Wakarusa Indiana, the six-ton vehicle will have a two-ton payload, and is scheduled for launch mid-2010. A123 said its battery system would allow the vehicle a 100-mile range.

Plans are to produce 400 electric vehicles in 2010.

The class 2c-3 all-electric commercial trucks are expected to be made available for sale in North, Central and South America.

Shane Terblanche, Navistar general manager, electric vehicles, said: “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.”

President Obama awarded a grant of $39m to the Navistar-Modec project last August.

With its HQ in Watertown, Mass., A123 was founded in 2001, and has built its technology out of initial development from the Massachusetts Institute of Technology.

Jason Forcier, Vice President, A123 Systems Automotive Solutions Group, said: “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.”