Delphi, a Tier 1 auto supplier, announced plans to supply hybrid components to Chinese automaker SAIC.

Delphi, previously a part of GM, plans to supply Shanghai Auto SAIC with all of the necessary powertrain components for upcoming mild hybrids developed in the next few years by the Chinese automaker.

Delphi will work with A123 Systems Inc. to produce the batteries needed for the Chinese automaker.  The batteries will be lithium ion battery packs, but the companies are working on a way to incorporate air cooling into the system.  A123 Systems was competing to become the supplier of batteries for the upcoming Chevy Volt.

Though Delphi will supply the components, SAIC will develop all of the software and controllers for the hybrids in house.

SAIC is GM's partner in the Chinese market and possibilities of the Delphi systems expanding outside of the Chinese market are high.