Though off the day's highs, A123 Systems (AONE +36.5%) is still posting huge gains on account of...

|About: A123 Systems, Inc. (AONEQ)|By:, SA News Editor

Though off the day's highs, A123 Systems (AONE +36.5%) is still posting huge gains on account of its battery tech announcement. Short-covering is likely driving the rally (23.5% of A123's float was shorted as of May 15), as may hopes that the cash-strapped company's breakthrough will allow it to avoid bankruptcy. Technology Review notes A123's tech could both reduce the cost of an electric car battery pack by 10%-20%, and replace lead-acid batteries in conventional cars.