The delivery, as per the contract, will be achieved by the end of 2012.

AC Propulsion is expected to use the battery units for the production of 100 electric cars.

The order from the Shanghai and California based company comes after trial and testing of sample cylindrical battery cells provided by China BAK.

Commenting on securing the order China BAK CEO Xiangqian Li expressed confidence in being able to secure further orders for its products.

"We believe revenue growth from this segment will be driven by our high quality products, technical capability and growing market recognition," added Li.