A123Systems Closes $40 Million Round; Targeted for Expanding Product Portfolio and Scaling Manufacturing of Hybrid and Plug-In Hybrid Batteries
A123Systems has completed a $40 million round of funding, bringing the total capital invested in the company to $102 million.
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.
GM recently awarded A123Systems and partner Cobasys an advanced battery development contracts to design and test lithium-ion batteries for use in the Saturn Vue Green Line plug-in hybrid SUV. (Earlier post.)
A123Systems is also working with GE to develop systems for the hybrid bus market (earlier post) and recently received a $15 million development contract for next generation HEV batteries by the US Department of Energy and the United States Advanced Battery Consortium (USABC) (earlier post).
This latest funding round was led by General Electric Commercial Finance, which is significantly increasing its investment in A123Systems. The Procter & Gamble Company—the world’s leading consumer goods company and a leading manufacturer of consumer batteries through its brand Duracell—joined in the round as a new investor.
As the worldwide leader in the battery category, we constantly evaluate emerging technology for its potential to deliver benefits to consumers. Our investment in A123Systems coupled with our companies’ joint development activities is intended to further strengthen Duracell’s position in the consumer portable power space. This move also reinforces P&G’s commitment to partner with innovative companies to gain access to new technologies.—Mark Bertolami, VP, Global Marketing and General Manager, North America, Duracell
[A123Systems’s] latest wins—focused on Plug-In Hybrid and Hybrid Electric Vehicles—are particularly exciting given current global environmental challenges.—Mark Huang, Senior Vice President, GE Energy Financial Services
Prior investors are also participating including 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 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 cadmium technology to doped nanophosphate lithium-ion technology.