Press Releases

• Nov 19, 2008

  
  AES Installs A123Systems H-APU™ Energy Storage System at Facility in Southern California (archived)

• Aug 08, 2008

  
  A123Systems Files Registration Statement for Initial Public Offering (archived)

• Apr 28, 2008

  
  A123Systems Begins Taking Consumer Orders for its Hymotion™ L5 Plug-in Conversion Modules (archived)

• Mar 05, 2008

  
  A123Systems Signs Production Contract for Think Electric Vehicles (archived)

• Mar 04, 2008

  
  A123Systems Announces Patent Issuance for Nanophosphate™ Lithium Ion Battery Technology (archived)

• Jan 22, 2008

  
  A123Systems Appoints Robert Johnson as Vice President and General Manager (archived)

• Oct 23, 2007

  
  A123Systems Receives $30 Million Investment to Support Scale Up and Recent Contract Awards in the Automotive and Powertool market (archived)

• Sep 19, 2007

  
  A123Systems™ to Supply Lithium Ion Engine Start Batteries to Cessna Aircraft Company for Citation Fleet of Aircraft (archived)

• Aug 09, 2007

  
  GM and A123Systems to Co-Develop Lithium-Ion Battery Cell for Chevrolet Volt (archived)

• May 17, 2007

  
  A123Systems Is Selected As Battery Supplier For BAE Systems’ Hybrid Propulsion System Which Powers The Leading Series Hybrid Bus Supplier in North America (archived)

• May 16, 2007

  
  A123Systems Introduces 32-Series Automotive Class Lithium Ion™ Application-Specific Cells at the Advanced Automotive Battery Conference (archived)

• May 03, 2007

  
  A123Systems Acquires Hymotion (archived)

• Feb 26, 2007

  
  President Bush Meets with A123Systems’ CEO to Discuss Advanced Batteries for Plug-In Hybrids Capable of Over 150 MPG (archived)

• Jan 25, 2007

  
  A123Systems Receives $40 Million Investment to Expand Product Portfolio and Scale Manufacturing of Hybrid and Plug-In Hybrid Batteries (archived)

• Jan 04, 2007

  
  GM to use A123 Batteries for Saturn Vue Plug-In Hybrid Development Program (archived)

• Jan 03, 2007

  
  Cobasys and A123Systems Announce Partnership To Develop Lithium Ion Hybrid Electric Vehicle Battery Systems (archived)

• Oct 26, 2006

  
  A123Systems To Develop High Voltage Battery Modules for Lightweight Fuel Cell Hybrid Bus (archived)

Press Releases

AES Installs A123Systems H-APU™ Energy Storage System at Facility in Southern California (archived)

WATERTOWN, Mass. - November 19, 2008 - A123Systems, a developer and manufacturer of advanced Nanophosphate^TM lithium-ion batteries and battery systems, announced the delivery and installation of its first Hybrid Ancillary Power Units (H-APU) with AES Energy Storage, LLC, a subsidiary of The AES Corporation (NYSE: AES), one of the world's largest global power companies.  The H-APU is designed to create another way for AES' existing facilities to meet the power industry's need for capacity, by supplying power plant reserve requirements and other ancillary services which enable the increasing use of renewable energy sources. 

A123 is under contract to provide multiple Hybrid Ancillary Power Units in 2008 and 2009 for use in grid stabilization applications in several AES facilities across the world.  The initial unit, installed at one of AES's Southern California power plants, is capable of delivering 2 MW of power at close to 90% efficiency. 

"We believe A123's H-APU product line addresses the demanding performance requirements of grid stabilization and offers an innovative solution for the utility industry.  When fully deployed in 2009, we believe this will be the largest fleet of battery storage systems in operation on the electric grid," said Dave Vieau, Chief Executive Officer of A123 Systems.

The Hybrid Ancillary Power Unit energy storage system can serve two functions. First, A123's H-APU will absorb (charge) energy from the grid during times when the frequency or voltage is too high and inject (discharge) that energy back to the grid when it is too low.  A123's H-APU is expected to allow greater use of variable sources of energy such as wind and solar by rapidly absorbing or injecting energy as these sources vary. The H-APU is expected to provide variable service much faster than existing power plants responding in seconds rather than minutes.  And, because it is recycling energy already in the system, it will provide these services without unnecessary emissions. 

Second, the Hybrid Ancillary Power Units are designed to provide backup services by storing energy until it is needed by the grid in the event of a power plant or other asset failure. In some markets, the portion of thermal power plant capacity normally reserved for ancillary services to provide reserve capacity and frequency regulation services can be freed up to operate at a higher capacity and produce more electricity and associated revenue. 

"We believe fast-responding, high-efficiency energy storage systems, such as A123's H-APU, will make power systems more efficient and responsive.  This technology gives Independent System Operators' (ISOs) a powerful new tool to balance varying load with the increasingly varying supply created by renewable sources.  They also create an efficient, low-cost way for plants to meet reserve requirements," said Chris Shelton, President of AES Energy Storage, LLC.

AES is working with industry leaders to selectively deploy energy storage solutions to improve the capacity, responsiveness, and efficiency of its existing thermal, renewable, and distribution facilities.  As one of the world's largest global power companies, with operations in 29 countries, AES is comprised of a platform of more than 120 power facilities and 12 million distribution customers. 

Pending final approvals, the H-APU will be used to provide ancillary services for the California power market.  For more information on the A123 offering for utilities, visit www.a123systems.com.

About A123Systems

A123Systems develops and manufactures advanced lithium-ion batteries and battery systems for the transportation, electric grid services and portable power markets.  Founded in 2001 and headquartered in Massachusetts, A123 Systems' proprietary nanoscale electrode technology is built on initial developments from the Massachusetts Institute of Technology.  For additional information please visit www.a123systems.com.

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Press Releases

A123Systems Files Registration Statement for Initial Public Offering (archived)

Watertown, MA - August 08, 2008 - A123 Systems, Inc. announced today that it has filed a registration statement with the Securities and Exchange Commission relating to the proposed initial public offering of its common stock.

The joint book-running managers of the proposed offering will be Morgan Stanley & Co. Incorporated and Goldman Sachs & Co.  Merrill Lynch, Pierce, Fenner & Smith Incorporated will serve as co-lead manager, and Broadpoint Capital, Inc. and Lazard Capital Markets LLC will serve as co-managers.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective.  These securities may not be sold, nor may offers to buy be accepted prior to the time the registration statement becomes effective.  This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Once available, a preliminary prospectus relating to these securities may be obtained from Morgan Stanley & Co. Incorporated, Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, telephone: 866-718-1649 or by emailing prospectus@morganstanley.com and from Goldman Sachs & Co., Prospectus Department, 100 Burma Road, Jersey City, NJ 07035, telephone: 212-902-1171, facsimile: 212-902-9316 or by emailing prospectus-ny@ny.email.gs.com 

About A123Systems

A123Systems develops and manufactures advanced lithium-ion batteries and battery systems for the transportation, electric grid services and portable power markets.  Founded in 2001 and headquartered in Massachusetts, A123Systems' patented Nanophosphate^TM technology includes nanoscale materials initially developed at and exclusively licensed from the Massachusetts Institute of Technology.

 

Edelman

Eric Jones 212-819-4862

eric.jones@edelman.com 

press@a123systems.com 

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Press Releases

A123Systems Begins Taking Consumer Orders for its Hymotion™ L5 Plug-in Conversion Modules (archived)

Starting Today, A123Systems will Accept Consumer Deposits for Plug-in Conversion Modules Capable of Increasing Fuel Economy to More Than 100 Miles Per Gallon and Reducing CO₂ Emissions by more than 50%

Watertown, Mass. – April 28, 2008 – A123Systems, developer and producer of Nanophosphate™ lithium ion batteries, today announced the launch of its Hymotion product line’s new Web site, www.hymotion.com, designed to provide information and take orders from individuals interested in purchasing the L5 Plug-in Conversion Module (PCM) for the Toyota Prius.  A123Systems also continues to sell  Hymotion Plug-in Conversion Modules to fleet and government buyers, with more than 50 vehicles currently on the road in corporate and government demonstration programs.

A123Systems’ Hymotion product line is the  only fully tested PCM that meets or exceeds federal requirements for crash-worthiness and emissions.  Based on independent testing performed at Argonne National Labs as well as Idaho National Labs, the L5 PCM will enable a Toyota Prius to obtain fuel economies of more than 100 miles per gallon.  

A123Systems is in the process of developing and certifying a nationwide dealer network for the Hymotion product line, beginning with Hymotion dealerships in Seattle, San Francisco, Los Angeles, Minneapolis, Boston and Washington, D.C.  In an important step for broad acceptance, A123 has been working with the California Air Resources Board (CARB) and has outlined a path for conditional approval from CARB to sell up to 500 conversion modules in the state of California to begin its consumer launch.

“This long-anticipated announcement is celebrated not only by us as the culmination of years of hard work, but by many who are eager to dramatically lower emissions and free themselves from dependence on petroleum,” said Dave Vieau, CEO of A123Systems. “Today, we begin a process that could conceivably change the environmental, economic and political implications of driving a car for the better.”

According to the Electric Power Research Institute (EPRI), half of the cars in the U.S. are driven just 25 miles a day or less.  With an average electrically assisted driving range of 30-40 miles, a Toyota Prius equipped with a Hymotion L5 module charged overnight via a standard 120 volt outlet will, for most drivers, significantly reduce the amount of petroleum consumed and CO₂ emitted.  An L5 charged from the average national blend of electricity results in a 50 percent or greater reduction in overall “well-to-wheel” CO₂ emissions compared to a traditional gas-powered vehicle.  The L5 module is also environmentally friendly and fully recyclable, containing no heavy metals or toxic chemicals.

Plug-in Conversion Modules will be available for owners of Toyota Priuses, model year 2004 to 2008.  At an installed cost of $9995 plus shipping, buyers can choose a certified Hymotion dealer for conversion of their hybrid vehicles.  Installations for consumers are expected to begin in July,2008. 

About A123Systems

A123Systems is one of the world’s leading suppliers of high-power lithium ion batteries. The company’s patent pending Nanophosphate™ technology enables its batteries to deliver a previously unavailable combination of power, safety and life.  Applicable to a wide range of industries, A123Systems’ products remove many traditional technology constraints to provide OEMs expanded flexibility in system design.  With world-class expertise and management, global manufacturing operations and one of the largest automotive lithium ion R&D teams, A123Systems’ and its Automotive Class Lithium Ion™ products are helping to accelerate platform electrification.  Founded in 2001 and headquartered in Massachusetts, A123Systems’ proprietary nanoscale electrode technology is built on initial developments from the Massachusetts Institute of Technology.  A123Systems' Advanced Research & Government Solutions Division in Ann Arbor, Michigan is nationally recognized for new materials development and cutting-edge research.  For additional information please visit www.a123systems.com.

About our Hymotion™ Product Line

A123Systems’ Hymotion product line bridges the current HEV-PHEV gap by enabling thousands of existing hybrids on the road to reach their full green potential through conversion to plug-in hybrids. Our Hymotion product line was developed by automotive industry veterans who set out to design advanced green transportation systems that improve upon existing vehicles and can be used by consumers today.

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Press Releases

A123Systems Signs Production Contract for Think Electric Vehicles (archived)

GENEVA and WASHINGTON - March 5, 2008 - GE (NYSE: GE) announced it is ramping up its efforts to enable global electrification of transportation by investing in Norwegian electric car manufacturer Think, which unveiled a five-seat crossover concept car in Geneva today. To power its vehicles, Think has signed a commercial supply agreement with lithium-ion battery manufacturer A123Systems. GE is in a unique position to help both companies commercialize technology to make electric transportation practical and affordable.

Think presented its investment relationship with GE in Geneva at the 78th International Motor Show, where it unveiled a new platform concept for larger electric vehicles: The crossover TH!NK O_x is an electric five-seat car close to the size of a sport utility vehicle but lighter and more aerodynamic. Also in Geneva, the company launched to the market the TH!NK City, a plug-in electric car with over 100 miles range.

GE announced its electric transportation investments at the Washington International Renewable Energy Conference. The commercial supply agreement with A123Systems provides Think with patented Nanophosphate^TM lithium-ion batteries for the TH!NK City, now in production at the company's factory in Norway. Think is delivering its first cars in Norway, with international sales to follow later in the year.

A123 is now drawing on the research and technology development expertise of GE Global Research in Niskayuna, New York. The joint research will support A123's battery development, including batteries for Think's vehicles.

GE Energy Financial Services announced it has invested in A123Systems to help the company roll out batteries for Think. GE is now A123's largest cash investor, having put more than US $20 million into the company. In addition, GE disclosed it has invested US $4 million in Think Global, the Norwegian holding company that makes the electric cars. The investments were made by GE Energy Financial Services' recently expanded seven-member venture capital group -- with offices in Stamford, CT, San Francisco, and Munich, Germany. That group has invested nearly US $100 million in 12 companies during the last 18 months.

GE Energy Financial Services and GE Global Research are backing electrification developments in the transportation sector. This is part of GE's ecomagination^SM initiative, the company's commitment to help its customers meet their environmental challenges while expanding its own portfolio of cleaner energy products.

"Our work with A123 and Think taps GE's unique combination of venture capital, engineering, process and commercial expertise to help burgeoning, next generation technology companies bring their innovative products to market," said Kevin Walsh, Managing Director and leader of renewable energy investing at GE Energy Financial Services.

Added Mark Little, Senior Vice President and Director of GE Global Research: "Our researchers are improving energy storage and conversion technology as the key enabler of our founder Thomas Edison's vision of electricity as a viable propulsion system for vehicles, ranging from automobiles to industrial vehicles and locomotives."

A123Systems' President and CEO David Vieau commented: "The GE Global Research Center has been working with A123 on the development of safe and reliable battery-powered transportation, and this has allowed us to accelerate delivery of advanced battery solutions to Think. Our newest collaboration with Think helps us achieve the large-scale production of batteries and integrate them into commercially available electric vehicles."

Speaking at the Geneva auto show, Think CEO Jan-Olaf Willums said: "We see many important opportunities emerging from our new relationship with GE. This relationship will help Think - the manufacturer of the first highway-approved electric car in mass production - to stay at the forefront of electric vehicle technology."

GE's research includes a US $5.6 million US Energy Department contract to develop smaller, lower cost, higher performing hybrid drivetrain motors for hybrid electric vehicles. In addition, GE is working on a US $1.2 million project to develop advanced high temperature, high energy density capacitors. GE researchers are also engaged in a US $13 million project with the US Federal Transit Administration and other industrial partners to build a prototype lightweight, battery-dominant zero emissions hybrid fuel cell bus.

 

About GE Global Research

GE Global Research was the first industrial research lab in the United States and is one of the world's most diversified research centers, providing innovative technology for all of GE's businesses. Global Research has been the cornerstone of GE technology for more than 100 years, developing breakthrough innovations in areas such as medical imaging, energy generation, jet engines, advanced materials and lighting. GE Global Research is headquartered in Niskayuna, New York and has facilities in Bangalore, India; Shanghai, China; and Munich, Germany. Visit GE Global Research at www.ge.com/research.

 

About GE Energy Financial Services

GE Energy Financial Services' 350 experts invest globally with a long-term view, backed by the best of GE's technical know-how and financial strength, across the capital spectrum and the energy and water industries, to help their customers and GE grow. With US $17 billion in assets, GE Energy Financial Services, based in Stamford, Connecticut, invests more than US $5 billion annually in two of the world's most capital-intensive industries, energy and water. More information: www.geenergyfinancialservices.com.

 

About GE

GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.

 

About THINK

Think designs, develops, manufactures and markets environmentally friendly vehicles and technologies. The company has more than 17 years of experience in developing and producing electric vehicles. Today, 1,200 TH!NKs are driving on Norwegian roads. The new TH!NK City is a fifth-generation electric vehicle assembled in Norway. Series production of the TH!NK City car started late last year and the first cars will be delivered to Norwegian customers. At the Geneva Show, it announced the TH!NK City's launch in selected markets in Europe later this year. The capacity of its first assembly plant in Aurskog, outside Oslo, is presently being increased to 10,000 cars per year, which Think expects to reach during 2009. Strong owners with visions and resources want to make Think the "car company of the 21^st century." For more info: www.think.no.

 

About A123Systems

A123Systems is one of the world’s leading suppliers of high-power lithium ion batteries. The company’s patent pending Nanophosphate™ technology enables its batteries to deliver a previously unavailable combination of power, safety and life.  Applicable to a wide range of industries, A123Systems’ products remove many traditional technology constraints to provide OEMs expanded flexibility in system design.  With world-class expertise and management, global manufacturing operations and one of the largest automotive lithium ion R&D teams, A123Systems’ and its Automotive Class Lithium Ion™ products are helping to accelerate platform electrification.  Founded in 2001 and headquartered in Massachusetts, A123Systems’ proprietary nanoscale electrode technology is built on initial developments from the Massachusetts Institute of Technology.  A123Systems' Advanced Research & Government Solutions Division in Ann Arbor, Michigan is nationally recognized for new materials development and cutting-edge research.  For additional information please visit www.a123systems.com.

 

Contact:

Andy Katell, GE Energy Financial Services

+1-203-961-5773

 

Todd Alhart, GE Global Research

+1-518-387-7914

lhart@research.ge.com

 

Elizabeth Ames

+1-617-778-5594

press@a123systems.com

 

Ingvil Ladehaug, THINK Global

47 95 75 70 71

ila@think.no

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Press Releases

A123Systems Announces Patent Issuance for Nanophosphate™ Lithium Ion Battery Technology (archived)

Innovative Materials Development Enables New Generation of Products

Watertown, Mass. –  March 4, 2008 – A123Systems, developer and producer of Nanophosphate™ lithium ion batteries, today announced that U.S. patent 7,338,734 entitled “Conductive Lithium Storage Electrode” has been granted, adding to one of the industry’s most comprehensive high-power lithium ion patent portfolios.  This landmark patent protects A123’s unique Nanophosphate battery technology, which offers an advanced combination of power, safety and life. 

The capabilities of the Nanophosphate system have enabled a new class of lithium ion battery applications, thus spurring development of next-generation products in a variety of industries.  The application of Nanophosphate technology was introduced in DeWalt and Black and Decker power tool lines, which established a new level of portable power tool performance.  The technology is now enabling the use of lithium ion batteries in automotive applications, such as hybrid (HEV), plug-in hybrid (PHEV), extended-range (E-REV), and pure electric vehicles (EV).

“A growing number of companies have now recognized the many advantages of A123’s Nanophosphate batteries and have developed products around their capabilities,” said Dave Vieau, CEO of A123Systems. “The award of this patent from the U.S. Patent and Trademark Office is recognition of the leading-edge innovation on which our batteries are based.”

A123Systems has filed over 160 US and international patents and has raised $148 million to develop the Nanophosphate technology since its discovery at MIT.  To commercialize the technology and develop new products, the company has grown to over 850 employees globally, with facilities in Massachusetts, Michigan, Canada, China, and Korea.

Bart Riley, CTO and Vice President of R&D, added, “This key patent recognizes the seminal work at MIT that was the foundation of A123.  Our current team of 191 engineers and 58 scientists will continue to innovate and push the boundaries of energy storage technology strengthening our position in the industry.”

 

About A123Systems

A123Systems is one of the world’s leading suppliers of high-power lithium ion batteries. The company’s patent pending Nanophosphate™ technology enables its batteries to deliver a previously unavailable combination of power, safety and life.  Applicable to a wide range of industries, A123Systems’ products remove many traditional technology constraints to provide OEMs expanded flexibility in system design.  With world-class expertise and management, global manufacturing operations and one of the largest automotive lithium ion R&D teams, A123Systems’ and its Automotive Class Lithium Ion™ products are helping to accelerate platform electrification.  Founded in 2001 and headquartered in Massachusetts, A123Systems’ proprietary nanoscale electrode technology is built on initial developments from the Massachusetts Institute of Technology.  A123Systems' Advanced Research & Government Solutions Division in Ann Arbor, Michigan is nationally recognized for new materials development and cutting-edge research.  For additional information please visit www.a123systems.com.

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Press Releases

A123Systems Appoints Robert Johnson as Vice President and General Manager (archived)

Former Senior Vice President, President North America of $3 Billion American Power Conversion to Spearhead Group’s Efforts in High Value Markets

Watertown, Mass. –  January 22, 2008 – A123Systems, developer and producer of patent-pending Nanophosphate™ lithium ion batteries, today announced the formation of its Energy Solutions Group (ESG).  Robert Johnson will join A123Systems as VP of and GM of ESG, leaving his role as Senior Vice President, President North America at APC-MGE, a $3 billion in revenue global provider of critical power and cooling services.

ESG will be in charge of the design and development of advanced energy systems including stationary energy storage solutions that improve and enhance the efficiency of the electric grid in order to address the growing demand for alternative energy generation, in an effort to reduce CO2 emissions and meet renewable portfolio standards.  The group will also oversee all lithium ion solutions for heavy duty, rail and mass transit applications as well as battery solutions for engine start in aviation.  Additionally, ESG will supervise the company’s aftermarket lithium ion products designed to improve fuel economy such as the acclaimed Hymotion battery range extender modules planned for launch this spring. 

A123Systems’ growing portfolio of power tool and passenger automotive lithium ion products will continue to be distributed through the company’s existing value added channels and partners.

“The formation of the Energy Solutions Group enables us to continue our strategy of developing game changing technology by creating a strong, centralized group that will manage some of our most cutting edge product offerings,” said David Vieau, CEO and President of A123Systems.  “We are excited to have Rob join our fast growing company.”

As Senior Vice President, President North America at APC-MGE, Johnson led all North American operations.  Prior to the formation of APC-MGE, resulting from the Schneider Electric acquisition of American Power Conversion Corporation (APC), Johnson served as President and CEO of APC.  In his new role at A123Systems, he will report directly to President and CEO David Vieau, with whom he worked at APC.  Johnson will be joined by Bud Collins, formerly Vice President of Packs and Systems at A123Systems, who will serve as Vice President of Engineering.

“A123Systems’ battery technology is changing every industry in which it is introduced, making this a thrilling time to join and lead efforts for all of the company’s integrated systems,” explained Johnson.  “Having worked with Dave and Bud in the past, I know that I have joined a strong team of innovators striving to bring superior products to market and I look forward to continuing that tradition in my new role.”

Products already under development that will continue under the ESG umbrella include the large integrated energy storage solutions that power the BAE Systems’ HybriDrive® Propulsion System for use in the 2008 and future models of the Daimler Orion VII, the world’s number one selling hybrid transit bus, as well as advanced stationary solutions and aftermarket automotive products such as the Hymotion L5 module, a battery range extender module scheduled for commercial launch this spring.

“While A123Systems is already the world’s largest manufacturer of high power Nanophosphate lithium ion cells, with the creation of this new division we are enhancing our capabilities in order to meet and exceed our customers’ needs,” added Vieau.

About A123Systems

A123Systems is one of the world’s leading suppliers of high-power lithium ion batteries. The company’s patent pending Nanophosphate™ technology enables its batteries to deliver a previously unavailable combination of power, safety and life.  Applicable to a wide range of industries, A123Systems’ products remove many traditional technology constraints to provide OEMs expanded flexibility in system design.  With world-class expertise and management, global manufacturing operations and one of the largest automotive lithium ion R&D teams, A123Systems’ and its Automotive Class Lithium Ion™ products are helping to accelerate platform electrification.  Founded in 2001 and headquartered in Massachusetts, A123Systems’ proprietary nanoscale electrode technology is built on initial developments from the Massachusetts Institute of Technology.  A123Systems' Advanced Research & Government Solutions Division in Ann Arbor, Michigan is nationally recognized for new materials development and cutting-edge research.  For additional information please visit www.a123systems.com.Back to Press Releases

Press Releases

A123Systems Receives $30 Million Investment to Support Scale Up and Recent Contract Awards in the Automotive and Powertool market (archived)

Nanophosphate™ Lithium Ion Batteries Uniquely Applicable to Aviation Industry Offering Lighter Weight and Fuel Savings for Jet Engine Start and Auxiliary Power Unit Start Applications

A123Systems will use these funds to increase production capacity for new contract awards for hybrid electric, plug-in hybrid electric and extended range electric vehicle design wins with major automakers including a contract to co-develop proprietary cells for the GM E-FLEX program. A123Systems continues to expand its fast growing power tool battery business with Black & Decker Corporation, the world’s largest manufacturer of cordless tools, where the company is helping drive the transition from nickel technology to doped nanophosphate lithium-ion technology.

Demand for the company’s products has grown significantly in the past year and has recently opened for business its new, state of the art, 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 tools 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” added Vieau.

In addition to its leading edge lithium ion manufacturing technology, the new site was built to support TS-16949 quality systems and is designed for large scale handling of nano-materials, 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.”

“Our investment in A123Systems is based on their unique expertise in Nanophosphate based lithium ion technology to provide a better energy storage sources for vehicles, aircraft, tools and other demanding applications,” said James Kim, partner with CMEA Ventures. “Leading companies are taking advantage of A123Systems technology to enhance their products, and the company's the company management has done an excellent job of bringing the technology to market. We look forward to helping the company reach its full potential.”

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.

About A123Systems

A123Systems is one of the world’s leading suppliers of high-power lithium ion batteries. The company’s patent pending Nanophosphate™ technology enables its batteries to deliver a previously unavailable combination of power, safety and life.  Applicable to a wide range of industries, A123Systems’ products remove many traditional technology constraints to provide OEMs expanded flexibility in system design.  With world-class expertise and management, global manufacturing operations and one of the largest automotive lithium ion R&D teams, A123Systems’ and its Automotive Class Lithium Ion™ products are helping to accelerate platform electrification.  Founded in 2001 and headquartered in Massachusetts, A123Systems’ proprietary nanoscale electrode technology is built on initial developments from the Massachusetts Institute of Technology.  A123Systems' Advanced Research & Government Solutions Division in Ann Arbor, Michigan is nationally recognized for new materials development and cutting-edge research.  For additional information please visit www.a123systems.com.

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Press Releases

A123Systems™ to Supply Lithium Ion Engine Start Batteries to Cessna Aircraft Company for Citation Fleet of Aircraft (archived)

Nanophosphate™ Lithium Ion Batteries Uniquely Applicable to Aviation Industry Offering Lighter Weight and Fuel Savings for Jet Engine Start and Auxiliary Power Unit Start Applications

Watertown, Mass. - September 19, 2007 - A123Systems, developer and producer of patent-pending Nanophosphate lithium ion batteries, today announced that it will supply Cessna Aircraft Company, a Textron Inc. (NYSE: TXT) company, with a lithium ion engine start battery. Under the terms of the agreement, the batteries will be used in the Cessna Citation fleet of aircraft, Cessna’s business jet product line.

A123Systems’ battery technology is uniquely applicable to both commercial and very light jets (VLJs), bringing numerous benefits to jet engine start and auxiliary power unit (APU) start applications. With a significant weight reduction over existing aircraft batteries, the company’s lithium ion technology is intended to replace the currently used Lead Acid and NiCd batteries. A123Systems’ drop-in replacements are based on existing aircraft battery designs, allowing OEM aircraft manufacturers a clear path to a lithium ion solution. Inherently safer than other lithium ion chemistries, the batteries offer minimal maintenance over extended life.

“Teaming up with the world’s largest manufacturer of business jet aircraft enables us to quickly bring to market a viable, cost-effective long-term solution for the aviation industry,” said David Vieau, president and CEO of A123Systems. “This successful effort further validates the value our batteries offer to all modes of transportation including hybrid vehicles and aircraft.”

The battery packs have a central monitoring system for in-cockpit diagnostic reporting and integrated intelligent balancing circuitry. Additionally, the cells offer a wide range of operating temperatures to meet rigorous aviation requirements. Offering exceptional cycle and calendar life versus existing solutions, A123Systems’ battery technology requires fewer maintenance cycles, thus lowering overall ownership costs.

A123Systems is scheduled to deliver its aviation packs to Cessna late in the second quarter of 2008. The exact Citation airframes to use the lithium ion batteries from A123Systems are yet to be determined.

About A123Systems

A123Systems is one of the world’s leading suppliers of high-power lithium ion batteries. The company’s patent pending Nanophosphate™ technology enables its batteries to deliver a previously unavailable combination of power, safety and life.  Applicable to a wide range of industries, A123Systems’ products remove many traditional technology constraints to provide OEMs expanded flexibility in system design.  With world-class expertise and management, global manufacturing operations and one of the largest automotive lithium ion R&D teams, A123Systems’ and its Automotive Class Lithium Ion™ products are helping to accelerate platform electrification.  Founded in 2001 and headquartered in Massachusetts, A123Systems’ proprietary nanoscale electrode technology is built on initial developments from the Massachusetts Institute of Technology.  A123Systems' Advanced Research & Government Solutions Division in Ann Arbor, Michigan is nationally recognized for new materials development and cutting-edge research.  For additional information please visit www.a123systems.com.Back to Press Releases

Press Releases

GM and A123Systems to Co-Develop Lithium-Ion Battery Cell for Chevrolet Volt (archived)

Agreement Speeds Up Development of Chevy Volt's Innovative Propulsion System

Traverse City, MI. - August 9, 2007 - General Motors Corp. and A123Systems, Inc. will co-develop cells with A123System's nanophosphate battery chemistry for a long-lasting, safe and powerful battery for use in GM’s electric drive E-Flex system. The agreement is expected to expedite the development of the batteries for both electric plug-in vehicles and fuel cell variants of the E-Flex architecture.

"Breakthrough battery technology will drive future automotive propulsion, and the company that aligns with the best strategic partners will win. That’s what is so important about this deal,” said Bob Lutz, GM vice chairman of Global Product Development. “Whether you’re talking about the Chevy Volt, a fuel cell or even a plug-in hybrid such as our planned Saturn Vue, we need to understand the fundamental battery cell performance.”

The contract calls for A123Systems, of Watertown, Mass., to develop battery cells to meet the specific requirements of GM’s E-Flex system.  A123Systems is considered a forerunner in the development of nanophosphate-based cell technology, which, compared to other lithium-ion battery chemistries, provides higher power output, longer life and safer operations over the life of the battery.

The E-Flex electric vehicle architecture was first shown in the Chevy Volt concept car revealed earlier this year.  For average commuters driving 40 miles, the Chevy Volt will use zero gasoline and produce zero emissions and could nearly eliminate going to the gas station altogether.

"The Chevy Volt will lead the automotive industry in a new direction,” Lutz said. “We see a future where vehicles run on electricity and are equipped with clever ways of making electricity on board, making us less dependent on gasoline. It's the next great paradigm shift in our industry, an opportunity largely due to the rapid advancement in battery cell technology by companies such as A123Systems and LG Chem.”

Earlier this year, GM awarded two contracts for advanced development of battery packs, which require the integration of multiple battery cells, to Compact Power, Inc., a subsidiary of Korean battery manufacturer LG Chem, based in Troy, Mich.; and Frankfurt, Germany-based Continental Automotive Systems, a division of Continental A.G., a tier one automotive supplier.  Under these agreements, one contract was awarded to CPI, which will use battery cells developed by parent company LG Chem. A separate contract was issued to Continental, which will use the cells being co-developed by GM and A123Systems.

"A123Systems and LG Chem are both top-tier battery suppliers, with proven technologies,” said Denise Gray, director of GM's Energy Storage Devices and Strategies. "We’re confident one, or possibly both of these companies’ solutions will meet our battery requirements for the E-Flex system.”

Dave Vieau, A123System's chief executive officer, said this type of battery will be advantageous in other transportation industries as well.

“We’re talking today about the Volt and implications that it will have on the electrification of passenger vehicles, but the technology goes a lot further than that,” Vieau said. “The weight, size, safety and performance of these batteries have implications on all transportation, including hybrid buses, trucks and aircraft.”

A123Systems currently manufactures over ten million cells annually making it the world’s largest producer of batteries with nanophosphate chemistry.  Most of these cells are used in rechargeable power tools.

The co-development of this battery technology is the latest step in GM’s efforts to diversify the transportation away from petroleum with a range of alternatives. These include:

A diverse lineup of hybrid models is now in production, the GM diesel hybrid electric system for large city buses, the Saturn Vue and Saturn Aura Green Line hybrid models and the all-new Chevy Malibu hybrid. Coming this fall, the Chevrolet Tahoe and GMC Yukon Hybrid SUVs feature the world’s first 2-Mode hybrid system in an SUV, providing up to a 40-percent improvement in city driving fuel economy to what is already the industry’s most fuel-efficient full-size SUVs. Due next year is a front-wheel-drive 2-Mode hybrid Saturn Vue Green Line, with plans to make a plug-in version of the Vue that has the potential to achieve double the fuel efficiency of any current GM SUV.

GM is also a leading producer of E-85 capable bio-fuel vehicles, with more than two million on the road. Additionally, GM provides more vehicles that achieve 30 mpg highway than any other manufacturer in the U.S. market. GM is also the first automotive member to join the U.S. Climate Action Partnership (USCAP), a group of global companies and non-governmental organizations formed to support an economy-wide, market-driven approach to reducing carbon emissions.

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About General Motors
General Motors Corp. (NYSE: GM), the world’s largest automaker, has been the annual global industry sales leader for 76 years. Founded in 1908, GM today employs about 280,000 people around the world.  With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries.  In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands:  Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall.  GM’s OnStar subsidiary is the industry leader in vehicle safety, security and information services.  More information on GM can be found at www.gm.com.

About A123Systems
A123Systems is one of the world’s leading suppliers of high-power lithium ion batteries. The company’s patent pending Nanophosphate™ technology enables its batteries to deliver a previously unavailable combination of power, safety and life.  Applicable to a wide range of industries, A123Systems’ products remove many traditional technology constraints to provide OEMs expanded flexibility in system design.  With world-class expertise and management, global manufacturing operations and one of the largest automotive lithium ion R&D teams, A123Systems’ and its Automotive Class Lithium Ion™ products are helping to accelerate platform electrification.  Founded in 2001 and headquartered in Massachusetts, A123Systems’ proprietary nanoscale electrode technology is built on initial developments from the Massachusetts Institute of Technology.  A123Systems' Advanced Research & Government Solutions Division in Ann Arbor, Michigan is nationally recognized for new materials development and cutting-edge research.  For additional information please visit www.a123systems.com.

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A123Systems Is Selected As Battery Supplier For BAE Systems’ Hybrid Propulsion System Which Powers The Leading Series Hybrid Bus Supplier in North America (archived)

High-Power, Low-Weight Automotive Class Lithium Ion™ Battery Technology to Power HybriDrive® Propulsion System

Watertown, Mass. - May 17, 2007 - A123Systems, developer and producer of state-of-the-art Automotive Class Lithium Ion™ batteries, today announced that starting in early 2008, BAE Systems will be offering A123Systems’ lithium ion battery technology as part of its HybriDrive® propulsion system. BAE Systems’ HybriDrive propulsion system is available on the DaimlerChrysler Orion VII hybrid transit bus. The system is in use in three of the four largest hybrid bus fleets in the world today. The next-generation HybriDrive system featuring A123Systems batteries will be available for commercial buses beginning in 2008.

‘By introducing lithium-ion technology to the transit industry, BAE Systems is continuing its nearly decade-long commitment to providing clean and efficient hybrid propulsion,‘ said Hank McGlynn, Vice President of Vehicle Systems for BAE Systems in Johnson City, New York. ‘Our lithium ion energy storage system offers better value through longer life, improved performance, and reduced maintenance. It sets a new industry benchmark.”

A123Systems is designing and building turnkey energy storage systems (ESS) specifically for BAE Systems. Built on A123Systems’ Nanophosphate™ chemistry, these packs comprise a power boost component which provides higher specific power, lighter weight and smaller overall volume than the existing battery packs, resulting in a more robust ESS that further reduces emissions in heavy-duty applications. The company’s batteries are significantly smaller and lighter than the previous generation ESS technology typically used in this market and are designed to withstand the heavy duty environments typical of an urban bus drive cycle.

‘Our Nanophosphate cells offer a marked performance improvement in power, calendar and cycle life over other battery technologies available today and address the durability and safety required for automotive use,’ said David Vieau, president and CEO of A123Systems. ‘Being