US automaker Chrysler has signed an agreement with A123Systems that will see the MIT spin-out supply batteries for its first-production electric vehicles.

A123Systems will supply energy storage systems for Chrysler's first-generation ENVI Range-extended electric vehicles and battery-only electric vehicles.

The heart of ENVI's battery system is a scalable battery module, as demonstrated in ENVI's five electric-drive vehicles showcased at the 2009 North American International Auto Show in Detroit.

The five vehicles included the Dodge Circuit EV, the Jeep Wrangler EV, the Jeep Patriot EV, the Chrysler Town & Country EV and the Chrysler 200C EV concept.

At the show, Chrysler announced its intention to bring the company's first-production electric vehicle to market in 2010.

A123Systems is currently planning a site in Michigan where it will manufacture the nanophosphate lithium-ion prismatic battery cells, modules and battery packs for Chrysler.