A123 batteries picked by Chinese electric car maker

A123 Systems Inc. said Tuesday that its battery packs will be used in electric cars made by one of China’s largest automakers.

The lithium-ion batteries will be used by Shanghai Automotive Industry Corp. in a new 2012 electric passenger car for the Chinese market, the Watertown-based company said.

The batteries will be provided through a joint venture, known as Advanced Traction Battery Systems Co., that A123 (Nasdaq: AONE) has formed with Shanghai Automotive.

A123 is "very pleased with our increasing traction in China, where activity levels are growing and there is significant government opportunity for EV and grid programs," said David Vieau, CEO of A123, during the company's third-quarter earnings call Tuesday.

Vieau said the company is providing product types to a second Chinese automaker as well, which the company expects will lead to a production supply agreement.

Meanwhile, A123 reported that its third quarter net loss widened to $43.7 million, from $22.8 million in the same period a year earlier. The loss came as operating expenses more than doubled on a year-over-year basis, to $41.1 million from $20.8 million.