A123 Systems Strikes Deal With Leading OEM in China
2009 has been a busy year for Massachusetts-based battery maker A123 Systems. Having already landed a contract to supply Chrysler with lithium ion batteries, received nearly $250 million in grant money from the U.S. Gov’t, and launched a public stock offering; A123 Systems is now capping off this calendar year with the announcement that they’re entering into a joint venture with SAIC Motor Co. Ltd, a leading automaker in China.
The purpose of the new venture will be to make and supply batteries for hybrid and all-electric cars and trucks in China, which is currently the largest and fastest growing automotive market in the world. The venture’s ownership will be held 51 percent by SAIC Motor and 49 percent by A123 Systems, with the management duties of the venture being shared equally between the parties.
“We are excited to be partnering with an industry leader such as SAIC Motor to pursue the expanding Chinese market for advanced lithium ion battery technology,” said David Vieau, chief executive officer of A123 Systems. “As part of this partnership we look forward to building a team of outstanding employees to develop innovative battery technologies that we expect will be included in some of the highest quality hybrid and electric vehicles anywhere in the world.”
Since first going public back in September, A123′s stock has steadily declined. However, news of the deal apparently has investors reinvigorated as the stock has been rising again and could soon be back to where the company was priced when it was first released to the public.
Category: Battery News
