 A123Systems’ lithium ion batteries are enabled by proprietary nanophosphate technology. (Photo: A123Systems) |
October 24, 2007 — A123Systems, developer and producer of patent-pending nanophosphate lithium ion batteries, has announced it has completed a $30 million round of funding, bringing the total capital invested in the company to $132 million.
A123Systems will use the funds to increase production capacity for new contract awards for hybrid electric, plug-in hybrid electric, and extended-range electric vehicle designs with major automakers, including a contract to co-develop proprietary cells for the GM E-Flex system, which can accommodate many different types of propulsion systems and fuels. E-Flex was first introduced in January along with the unveiling of GM’s all-electric Volt concept vehicle at the Detroit International Auto Show.
A123Systems continues to expand its power tool battery business with Black & Decker Corp. A123Systems is helping to drive the toolmaker’s transition from nickel technology to doped nanophosphate lithium ion technology.
Demand for the company’s products has grown significantly in the past year and A123Systems has recently opened a 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 tool 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.”
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 nanomaterials, 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.”
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.