A123Systems Receives $30 Million Investment To Support Scale Up
A123Systems® announced that has received $30 million in funds that it will use to increase production capacity for new contract awards for hybrid electric, plug-in hybrid electric and extended range electric vehicle design wins with major automakers including a contract to co-develop proprietary cells for the GM E-FLEX program. A123Systems continues to expand its power tool battery business with Black & Decker Corp., said to be the world’s largest manufacturer of cordless tools, where the company is helping drive the transition from nickel technology to doped nanophosphate lithium-ion technology.
A123Systems states that demand for the company’s products has grown significantly in the past year and has recently opened for business its new manufacturing site for the company’s automotive class Lithium Ion batteries.
"We continue to scale our production-proven and cost-effective designs to meet demand as we expand our presence in the automotive, aviation and hand-held power tools markets." said David Vieau, CEO and President of A123Systems. "We have vertically integrated production from key raw materials to finished cells, incorporating best practices at every level to deliver high quality products with superior performance" added Vieau.
In addition to its lithium ion manufacturing technology, the new site was built to support TS-16949 quality systems and is designed for large scale handling of nano-materials, advanced particle control equipment and clean room environments needed to support the stringent manufacturing and quality requirements of the automotive market.
"Our investment reaffirms the commitment we first made to A123 by leading its $40 million equity fundraising in January," said Kevin Walsh, Managing Director of Renewable Energy at GE Energy Financial Services. "This relationship is a key example of our efforts to support expansion-stage companies and projects in clean energy and water technology, as well as efficiency initiatives, through venture equity investing."
"Our investment in A123Systems is based on their unique expertise in Nanophosphate based lithium ion technology to provide a better energy storage sources for vehicles, aircraft, tools and other demanding applications," said James Kim, partner with CMEA Ventures. "Leading companies are taking advantage of A123Systems technology to enhance their products, and the company’s the company management has done an excellent job of bringing the technology to market. We look forward to helping the company reach its full potential."
Investors in the company include General Electric, Procter & Gamble, Alliance Capital, Motorola, Qualcomm, North Bridge Venture Partners, Sequoia Capital, CMEA Ventures, FA Technology Ventures, OnPoint, Carruth Management, the Massachusetts Institute of Technology and Desh Deshpande, the company’s board chairman.
