SB LiMotive, the joint venture of South Korea's Samsung SDI Co. (006400.SE) and Germany's Robert Bosch GmbH, will supply the lithium-ion battery packs for Fiat SpA's (F.MI) upcoming 500EV electric vehicle that will be launched in the U.S. in 2012 as part of the Italian automaker's tie-up with Chrysler Group LLC.

The deal marks the "first step for SB LiMotive into the U.S. electric-vehicle market," Bosch said in a statement Sunday.

The battery packs will be developed in Orion, Mich., and the battery cells will be produced in South Korea. The battery packs' assembly will be in Springboro, Ohio, the world's largest auto parts supplier by revenue said.

"SB LiMotive has the technical expertise Chrysler will require as it launches this important program. Our established global footprint was a further strong point in our favor," SB LiMotive Executive Vice President Joachim Fetzer said.

Fiat holds a 20% stake in Chrysler and plans to raise its holding to 35% in 2011. Fiat Chief Executive Sergio Marchionne also serves as Chrysler's CEO.

Last year, SB LiMotive was named by BMW AG (BMW.XE) as battery supplier for the German luxury car maker's upcoming zero-emission Megacity Vehicle, which will be launched in 2013 under a sub-brand of BMW.

The battery is a key component for electric vehicles as it determines the range and performance of the car.

-By Christoph Rauwald, Dow Jones Newswires; +49 69 29725 512; christoph.rauwald@dowjones.com