Thursday, October 23, 2008

Battery maker A123Systems gets a $30M funding charge from GE

By Mass High Tech Staff

GE Commercial Finance and GE Energy Financial Services have added another $30 million to their investment in Watertown-based lithium ion battery maker A123Systems Inc.

The deal brings General Electric Co.’s total investment in A123Systems to $55 million since 2006 and makes the company A123Systems’ largest single investor, owning 9 percent of the company. The announcement was made today at GE’s Battery Technology Symposium held at its Global Research Center in Niskayuna, New York.

In addition to receiving capital from GE, A123Systems is drawing on the research and technology development expertise of GE Global Research to design battery system components for automotive programs, according to GE officials.

A123Systems has raised more than $132 million in private funding since its inception in 2001. In addition, the company filed documents with the U.S. Securities and Exchange Commission over the summer indicating its intention to bring its stock to the public market in an offering valued at $175 million.

Other investors include 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.

A123Systems uses nanotechnology to produce rechargeable lithium-ion batteries with a combination of greater power density, lower weight, lower cost and improved safety than other battery types. The company has received funding from the U.S. Department of Energy for hybrid and plug-in hybrid electric vehicle battery development and is working with major automakers on 19 vehicle models, ranging from hybrids to plug-in hybrids to full electric vehicles, according to the company.

A123Systems’s technology is also used to supply power in portable tools manufactured by Black & Decker and DeWalt and in stationary grid applications.