A123 Systems, whose lithium ion batteries could determine the fate of the U.S. auto industry, Friday filed for a $175 million initial public offering.

The Watertown, Massachusetts, company has reeled in $160.9 million in venture capital from investors including North Bridge Venture Partners, which has a $13.6 percent stake, Qualcomm (8.8 percent) and Motorola (8.5 percent). Gururaj Deshpande, co-founder of Sycamore Networks, has a 12.7 percent stake.

A123, whose technology was spun out of Massachusetts Institute of Technology, is competing to be the battery producer for the Chevy Volt, a plug-in hybrid seen as crucial to the recovery of ailing automaker General Motors. The Volt, scheduled for production in 2010, will use an electric motor and battery designed to go 40 miles between charges and a small gasoline engine to replenish the charge for longer trips.

For further information: Red Herring