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EnerDel may supply batteries to Fisker Auto

Competition among battery suppliers is heating up as they each try to land supply deals for upcoming electric and hybrid electric cars.

EnerDel has signed an agreement to supply lithium-ion batteries for electric carmaker Fisker Automotive's planned Fisker Karma.

Indianapolis-based EnerDel announced the letter of intent on Friday, a few hours before state senator Evan Bayh is scheduled to dedicate a new production line for auto batteries. The supply deal is contingent on reliability and performance testing. A Fisker Karma will be at the inauguration.

The Fisker Karma Fisker Automotive

The Fisker Karma is a four-door luxury car, priced at about $88,000, that runs on batteries and gets about 100 miles per gallon. It will have an internal combustion gas engine to charge the batteries for rides longer than 50 miles.

The electric-powered Karma will be available at dealers in June next year in the U.S. Fisker plans to open a European dealer network as well.

For EnerDel, the supply deal could mean as many as 15,000 battery packs, which is the number of Karmas that Fisker plans to build per year.

The company had a contract to supply Think, a maker of an all-electric town car, but Think's production plans have been changed because of financial problems.