Nothing wrong with A123s for 1/5 scale- plenty of room on that chassis for a 2p setup.
Awesome looking rig there, especially the bizzare rear suspension- any pics from the rear to get a better look at it?
Nice lathe work too- that shaft should work out fine so long as the motor is mounted at a perfect right angle to the chassis- dont want to introduce any flex to the shaft, as the pinion will wobble like heck and snap the shaft/ destroy the bearing. You knew that already though...