Chrysler talks to A123 for electric car batteries-WSJ

Sept 23 (Reuters) - U.S. car maker Chrysler LLC is in advanced talks to use batteries made by A123 Systems Inc in an electric car due to be launched by 2011, the Wall Street Journal said citing people familiar with the matter.

Chrysler, run by private equity house Cerberus [CBS.UL], is scheduled for a public demonstration of its battery-powered car for the first time on Tuesday, the paper said.

Watertown, Massachusetts-based A123 Systems, which is competing to supply lithium-ion batteries for General Motors Corp's GM.N all-electric Chevy Volt, had filed for a $175 million initial public offering in August.

A spokeswoman for Chrysler said the company “has nothing to announce at this time” about suppliers for its electric car while a spokesman for A123 could not be reached, the paper said.

Chrysler and A123 Systems could not be immediately reached for comment by Reuters. (Reporting by Savio D’Souza in Bangalore; Editing by Louise Heavens)