A123 Systems Gets a Recharge From GE

A123Systems recently received a timely recharge from a group of investors. GE (GE) is the lead investor in A123’s latest fund-raising effort, a $40 million series D equity round which closed January 24.

GE is also looking to see where A123Systems’ proprietary energy-storage technology can accelerate work already underway at GE on clean energy products. GE’s Global Research Center announced in late 2006 the first formal program, a $13 million joint initiative with A123Systems to develop a zero-emissions hybrid fuel cell bus.

A123Systems is one of the leading suppliers of high power lithium-ion batteries that use a doped nanophosphate lithium-ion technology to provide higher power density, longer life, better safety, and a much faster recharge. The Company, founded in 2001 by scientists from MIT, supplies batteries to Black & Decker (BDK) for a new line of high-performance, cordless power tools.

A123Systems will use these funds to scale its technology development and manufacturing capacity for plug-in hybrid electric vehicle [PHEV] batteries, as well as to support the fast growing demand in the power tool, hybrid electric vehicle [HEV] and consumer applications markets.