The Ford Motor Company has finalized a deal to source lithium-ion batteries for the company's first production plug-in hybrid due out in 2012.

The lithium-ion batteries will be supplied by Johnson Controls-Saft, a joint venture between U.S. and French companies. Ford is mum on exactly what vehicle will receive the plug-in hybrid powertrain, but the agreement will provide 5,000 battery packs per year with the option to increase volume to meet market demand.

Ford's prototype Escape plug-in hybrids are capable of running up to 30 miles on electricity before switching to a gasoline engine. Johnson Controls-Saft says it may be possible to extend that range to 40 miles on a production model.

The Chevrolet Volt will use lithium-ion batteries supplied by Korea's LG Chem to achieve a claimed 40-mile electric range.

The French-U.S. supplier venture is led by Mary Ann Wright, a former Ford engineer who worked on the Escape Hybrid. The battery cells will be produced in France and then shipped to America for final assembly to become a complete battery pack.