A123Systems Receives $40 Million Investment to Expand Product Portfolio and Scale Manufacturing of Hybrid and Plug-In Hybrid Batteries
A123Systems announced it has completed a $40 million round of funding, bringing the total capital invested in the company to $102 million. A123Systems will use these funds to scale its technology development and manufacturing capacity for plug-in hybrid electric vehicle (PHEV) batteries, as well as to support the fast growing demand in the power tool, hybrid electric vehicle (HEV) and consumer applications markets.
"As our doped nanophosphate technology continues to deliver superior power, safety and life, we’re experiencing tremendous growth and interest from companies across a vast array of industries looking to innovate new and existing products," said David Vieau, CEO and President of A123Systems.
This latest round was led by General Electric Commercial Finance which is significantly increasing its investment in A123Systems. Also participating is new investor Procter & Gamble Co. through its Duracell brand. Prior investors are also participating, including Alliance Capital, FA Technology Ventures, North Bridge Venture Partners, Sequoia Capital, OnPoint, the Massachusetts Institute of Technology, Motorola, Qualcomm, and Desh Deshpande, the company’s Board Chairman.
This funding adds to A123Systems' strong momentum with major customer wins and partnerships in the power tool and automotive industries. Most recently, A123Systems announced it will supply batteries to General Motors for the Saturn Vue Green Line plug-in hybrid development program, which is claimed to be the world’s first commercial program of its kind by a major automaker.
A123Systems is also working with GE to develop systems for the hybrid bus market and recently received a $15 million development contract for next generation HEV batteries by the U.S. Department of Energy and the United States Advanced Battery Consortium (USABC), an organization composed of DaimlerChrysler Corp., Ford Motor Company and General Motors Corp..
