A123Systems Scaling Up of Li-Ion Battery Production, Spinning Off New Unit

August 12, 2010 by Jeff Shepard

A123Systems announced that it is scaling up its lithium ion battery production for large customers such as power utilities, and automakers who are looking to expand their hybrid and electric vehicle offerings.

Media reports state that the company has also spun off a separate company, called 24M Technologies. The spin-off is being supported by A123 and unnamed venture capital funds to develop a hybrid energy-storage system (tested in part at MIT) that combines aspects of lithium-ion and flow battery technologies. 24M is developing battery solutions for grid power storage including wind and solar.

A123 has also dropped out of Chrysler’s electric vehicle development program because of a competing bid from an unnamed technology vendor (said by some media outlets to be Electrovaya. A123 had been named by Chrysler as its electric vehicle battery supplier early in 2009. To balance that news, the company said it has been chosen by an as yet unnamed major automaker to be the sole development partner for an expanded hybrid-electric vehicle line.