The company expects to manufacture the battery systems for Navistar’s EV in its Livonia, Michigan facility, slated to open in March 2010.

A123 claimed that its battery pack will enable the Navistar EV to travel a distance of approximately 100 miles on pure electricity before needing to be recharged. The battery pack will be capable of a rapid charge rate and will have a charge time dependent on the power of the charging system applied.

Navistar’s EV is a commercial electric vehicle that is purpose-built to be electric as it balances the needs of business and the environment. With zero tailpipe emissions, the Navistar EV can potentially reduce greenhouse gas emissions by as much as 10 tons annually, when compared to an equivalent diesel-powered vehicle, the company claimed.

Jason Forcier, vice president of A123 Systems, said: “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 US advancements in the electrification of commercial transportation in Navistar’s vehicles.”

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