Fiat's component unit Magneti Marelli has signed an agreement with FAAM to develop, produce and sell lithium batteries, the automaker said.

Fiat has expanded its expertise in electric vehicle technology through its alliance with Chrysler and the company says it sees joint development of EV batteries leading to sales starting in the second half of 2010.

FAAM is based in the Marche region of eastern Italy and has operations in Uruguay and in China. The company’s 2008 sales were EUR80m (US$114m).