* Chrysler to use A123's lithium-ion battery cells

* A123 planning Michigan facility to supply Chrysler

DETROIT, April 6 (Reuters) - Chrysler LLC on Monday named U.S.-based A123 Systems as the supplier of batteries for its first electric vehicles slated for debut in showrooms 2010.

A123 will supply next-generation lithium-ion vehicles for a range of Chrysler's electric vehicles under development, and plans a facility in Michigan to manufacture battery cells, modules and packs, the two companies said.

The planned 2010 launch of an electric vehicle would put Chrysler in a race with its larger rival General Motors Corp GM.N, which plans to roll out the all-electric Chevrolet Volt in November of that year.

Unlike traditional hybrids such as Toyota Motor Corp (7203.T: Quote, Profile, Research)'s Prius, electric vehicles like those Chrysler and other automakers are rushing to market are designed to use a small fuel-powered engine only to recharge the lithium-ion battery pack.

(Reporting by Soyoung Kim, editing by Dave Zimmerman)