MassCEC Approves $5M Forgivable Loan for A123 Systems; Targeted at Expansion for Grid Storage Systems
The Massachusetts Clean Energy Center (MassCEC) has approved a $5-million forgivable loan for Li-ion battery manufacturer A123 Systems contingent on its hitting job creation and private investment milestones. The company anticipates making $80 million in capital expenditures in Massachusetts to build up its manufacturing and R&D capabilities there by the end of 2014.
With the new expansion, A123 Systems will assemble and commission grid-storage battery systems in Massachusetts. Under the terms of the MassCEC financing, A123 will double its Massachusetts employment to more than 500 by 2014.
A123 Systems has added more than 50 corporate and research and development jobs in Massachusetts in the last year associated with its expanded US manufacturing capacity in Michigan. The expansion was supported by a $249 million federal stimulus US Department of Energy grant designed to accelerate the manufacturing and deployment of the next generation of batteries for plug-in hybrid and all-electric automobiles.
Founded in 2001, A123 Systems develops and manufactures advanced lithium ion batteries and battery systems for the transportation, electric grid and consumer markets. Headquartered in Watertown with additional facilities in Hopkinton, the company is a leading supplier of battery systems for a wide variety of next-generation energy storage applications. In September 2009, A123 raised $378 million in its initial public offering.