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A123 Systems to license Li-ion battery system technology to IHI Corporation; IHI makes $25M equity investment in A123

A123 Systems has expanded its business development partnership with IHI Corporation, one of the largest industrial equipment manufacturers in Japan. A123 will license its battery system technology to IHI, which will develop solutions for passenger and commercial electric vehicles in Japan using A123 battery cells. In addition, IHI will make a $25 million equity investment in A123.

Under the terms of the technology license agreement, IHI will be the exclusive provider of A123 battery systems and modules in the Japanese transportation market, licensing A123’s advanced battery system technology and systems integration expertise to manufacture solutions for electric vehicles.

The partners expect this will enable A123 to leverage the customer relationships IHI has developed with leading Japanese automakers. A related product supply agreement also establishes A123 as the exclusive supplier of lithium-ion battery cells to IHI for transportation as well as non-transportation applications that IHI may develop as a future value-added reseller, which has the potential of creating new market opportunities for A123 technology across IHI’s global businesses.

Since first partnering with A123 in 2009, we have seen increasing interest in A123’s advanced lithium ion battery technology for transportation and other applications. We believe that expanding our partnership enables IHI to address this growing market opportunity by commercializing innovative solutions powered by A123’s batteries.

—Taizo Suga, Associate Director, General Manager, Corporate Development Division at IHI

IHI is a well-established technology supplier to the Japanese auto industry, so we believe that expanding our relationship provides us with a strong strategic partner to help us more effectively and efficiently deliver our solutions to the Japanese transportation market. Additionally, we believe that we have a competitive advantage as the exclusive provider of lithium ion battery cells to IHI for the licensed applications as well as potential additional applications beyond transportation, allowing us to capitalize on new market opportunities introduced by IHI’s robust global network of businesses.

—Jason Forcier, vice president of the Automotive Solutions Group at A123

Comments

kelly

Not all 'green' Fed loans go bad.

A obvious loss is decades(centuries?)of oil subsidies - again with the companies showing record gouges, I mean profits.

HarveyD

In our area, mining, oil, NG and forestry are all getting more subsidies (direct and indirect government hand outs) than the total royalties and taxes they pay. In other words, they collect more public $$ than they pay back.

Reel$$

Which essentially means whole Provinces of Canada are owned by oil and gas. With the advent of viable disruptive new energy sources - these type monopolies will lose influence. Since their power commodity - oil will plummet in value.

In this sense perhaps some of Canada's resource wealth will be returned to Canadian citizens. What a concept!!

Reel$$

Oh, BTW, congrats to A123, looks like they are forging inroads to the explosive PHEV market. Great product from good minds!

As others point out - a $300M loss on Solyndra is fruitfly shite compared to losses from failed DOD weapons, wars, oil subsidies and "hot fusion." The Administration's investments in alternative energy and revitalized manufacturing - is prescient.

HarveyD

Using public $$$ to boast private firm profits should be classified as a criminal offenses. Non-monetary hand outs such also be restricted.

When governments participate in the initial or on-going investment, they should share the profits relative to their participation. It could be something close to JVs with a maximum level of 30% or so. Governments should sell their participation at market value within 10 years or so.

Reel$$

Government pays for huge costs such as space programs, vast research facilities and defense. People on these payrolls have increased their salaries to near and beyond private sector salaries. In the USA the highest salaries are paid to government employees in and around Virginia. Outpacing the the accumulated wealth in places like New York and Beverly Hills. Back Aswards.

Bob Wallace

"In the USA the highest salaries are paid to government employees in and around Virginia."

Here are a few of the highest annual salaries in the US. Any government employees pulling down this kind of money?

Stephen J Hemsley UnitedHealth Group $101,965,000. That's just under 102 dollars a year.

Edward A Mueller Qwest Communications $65,800,000

Robert A Iger Walt Disney $53,320,000

George Paz Express Scripts $51,520,000

Lew Frankfort Coach $49,450,000

Ralph Lauren Polo Ralph Lauren $43,000,000

The list is long, long, long until one drops below $1 million a year.

The average federal civilian employee earns $74,311 per year.

The largest government salary goes to the president of the U.S, who earns $400,000 a year.

Your claim might be correct, but what it might mean is that no one who makes serious money chooses to live in Virginia.

Bob Wallace

Argggggg......

$102 MILLION dollars a year.

danm

It also means the cost of living in D.C./Va region is high. Govt workers are not overpaid and do valuable work. Of course there is some waste, as there is in the private sector, but overall the country is not getting screwed.

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