The combination of the extra duties, a change in the lineup of electrified vehicles on tap and the adoption of Fiat’s product development system has resulted in the need to redistribute engineers who were grouped together in a special division known as ENVI under the leadership of Lou Rhodes, the paper said. “ENVI is absorbed into the normal vehicle development program,” Chrysler spokesman Nick Cappa told the News.

The number of employees involved in electric programs remains the same or slightly higher than under ENVI, the paper said. Some have been redeployed to the vehicle development side and others are now part of powertrain development, the story said. The News noted that Rhodes continues to oversee electric vehicle development for both Chrysler and Fiat.

During last week’s presentation of Chrysler’s five-year business and product plan, a new electric vehicle strategy emerged, the paper said. Unchanged are plans to offer a two-mode hybrid version of the Dodge Ram pickup next year, the story said. (The Detroit News)

That makes Toyota’s market-leading gasoline-electric hybrid car and other similar vehicles vulnerable to a supply crunch predicted by experts as China, the world’s dominant rare earths producer, limits exports while global demand swells, the news service said. Worldwide demand for rare earths, covering 15 entries on the periodic table of elements, is expected to exceed supply by some 40,000 tons annually in several years unless major new production sources are developed, the story said. One promising U.S. source is a rare earths mine slated to reopen in California by 2012.

Among the rare earth elements that would be most affected by a shortage is Neodymium, the key component of an alloy used to make the high-power, lightweight magnets for electric motors of hybrid cars, such as the Prius, Honda Insight and Ford Focus, as well as in generators for wind turbines, the news service said. Close cousins Terbium and Dysprosium are added in smaller amounts to the alloy to preserve Neodymium’s magnetic properties at high temperatures. Yet another rare earth metal, Lanthanum, is a major ingredient for hybrid car batteries, the story said.

Production of both hybrids cars and wind turbines is expected to climb sharply amid the clamor for cleaner transportation and energy alternatives that reduce dependence on fossil fuels blamed for global climate change, Reuters noted. An independent commodities consultant and strategic metals expert, calls the Prius “the biggest user of rare earths of any object in the world,” the story said. (Reuters)

The awards were part of $2.4 billion in grants being announced Wednesday by the Obama administration as part of its “Green” economy vision and efforts to enhance U.S. energy independence.

According to the story, almost all battery manufacturing for advanced technology vehicles is currently based in Asia.

White House economic and Energy Department officials said 48 projects in 25 states would receive money under a deal that requires winners to match the federal investment.

Reuters reported that U.S.-based companies will receive $1.5 billion to produce batteries and components and expand battery recycling capabilities. An additional $500 million will go to producing electric motors and other drive train components. The final $400 million will pay for testing plug-in hybrids and all-electric vehicles.

Chrysler is working with A123 Systems and set to receive $249 million, the story said. (Reuters)

Chrysler engineers test an all-electric minivan based on the Chrysler Town Country EV in the company’s wind tunnel.  This all-electric minivan is part of a proposed fleet of mail delivery vans made for the U.S. Postal Service.

Upland Hills Ecological Awareness Center held the fourth annual Earth Day Expo, Michigan’s largest Earth Day celebration in downtown Rochester, Mich. April 18 and 19. The Expo attracted an audience of 50,000 people interested in green living and looking to discover healthy, earth-friendly alternatives in food, energy, transportation, clothing and more. Chrysler LLC was a proud participant at this year’s expo and showcased the future through its electric vehicle program ENVI.

Chrysler, in conjunction with the Postal Service and select energy service providers, also announced that the company intends to apply to the U.S. Department of Energy’s (DoE) Transportation Electrification stimulus program for a federal grant. The money would enable the company to establish a nationwide demonstration fleet of zero-emission electric minivans that could be used for mail delivery.

“With more than a 40 percent market share, our Chrysler and Dodge minivans continue to lead the segment we created more than 25 years ago,” Frank Klegon, Executive Vice President—Product Development, said. “Our ENVI electric minivan concepts illustrate Chrysler’s innovation with electric vehicle technology and show what the future could hold.”

Chrysler’s ENVI group leveraged the flexibility of its electric-vehicle strategy to demonstrate an all-electric version of its best-selling minivan. These electric minivan concepts are targeted specifically for use by the U.S. Postal Service for mail delivery.

“We continue to look for energy-efficient replacement vehicles for our aging fleet as we explore ways to reduce our transportation-related carbon emissions,” Sam Pulcrano, vice president of sustainability for the U.S. Postal Service, said.

“Chrysler and the Postal Service have an established relationship, as there are more than 10,000 of our minivans in the Postal Service fleet,” Lou Rhodes, Vice President—Advance Vehicle Engineering and President of ENVI, said. “The Postal Service is a recognized environmental innovator and leader, and we are excited at the prospect of continuing our relationship by working to deliver alternative energy postal delivery vehicles in the future.”

A robust electric grid is essential for widespread customer acceptance of electric vehicles, and Chrysler has enlisted the involvement of key utility partners, including Duke Energy Corp., Con Edison Co. and DTE Energy Co.. Each has signed a letter of intent with Chrysler to equip post offices in strategically selected regions of the United States with a charging infrastructure for the envisioned program. The Electric Power Research Institute also has agreed to provide the Postal Service integration tools.

“Our partnership is structured to easily expand into additional regions of the country as the scope of the project increases,” Rhodes added.

Earlier this month, Chrysler announced that A123Systems Inc. would be one of its strategic partners and a production battery supplier for the company’s initial production electric vehicles. Chrysler LLC and A123Systems signed an agreement stating that A123Systems will supply energy storage systems for Chrysler’s first-generation ENVI Range-extended Electric Vehicles and battery-only Electric Vehicles.

Based in Watertown, Mass., A123Systems announced plans for a Michigan-based production facility. A123Systems will manufacture nanophosphate lithium ion prismatic battery cells, modules and battery packs for Chrysler. Advanced lithium-ion battery chemistry has the capability of meeting consumer demands for performance, driving range and durability.

ENVI, which represents the first four letters of environment, is Chrysler’s entrepreneurial in-house organization focused on electric-drive production vehicles and related advanced technologies. ENVI is a cross-functional, nimble team empowered to move quickly and access vast resources within Chrysler to integrate electric-vehicle technology into existing products.