Massachusetts, United States [RenewableEnergyWorld.com] Coming on the heels of last week's announcement that Chrysler chose A123 systems to supply electric vehicle batteries for the company's first production electric vehicles, this week A123Systems announced that it has raised US $69 million to expand its U.S. lithium ion battery manufacturing and smart grid capabilities. GE Energy Financial Services and GE Capital's Equity unit provided $15 million of the amount raised by A123 in this financing.
The company says that the capital will help create new jobs by expanding facilities in Hopkinton, Massachusetts, and Novi, Michigan and in its planned new factories in Michigan. In addition, the funding will support A123's efforts to develop applications for the smart grid, such as utility-scale energy storage.
This is GE's seventh investment in A123, making it the company's largest cash investor and bringing GE's cumulative investment to $70 million — increasing its ownership stake to more than ten percent.
Beyond providing capital, GE, through GE Global Research, provided system design expertise and supported A123's stationary power product development for electric grid applications, and helped to design battery system components for A123' automotive programs.