Magneti Marelli has just signed a deal with Italian battery maker FAAM SpA to cooperate on development and production of lithium ion batteries. Marelli is a parts-making subsidiary of Fiat and the batteries are being developed for use in transportation applications. In addition to its Italian plant, FAAM also has factories in China and Uruguay.

Now that Fiat is moving forward with product plans with Chrysler, the Italians plan to tap into the electric drive technology developed by the Americans. However, Chrysler has been working closely with A123 Systems on developing batteries. It's not clear how the Marelli-FAAM deal might affect the relationship with A123. It's certainly possible that the partners could move ahead with multiple battery suppliers.

[Source: Reuters]

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