A123 Systems to supply and invest in green car maker Fisker Automotive

15 January 2010

NASDAQ-listed lithium ion battery developer, A123 Systems, which raised $380m in its public offering in 2009, has secured a battery supply agreement with a new Fisker Automotive, a new American automaker building premium green vehicles.

Under the agreement, developer and manufacturer of advanced nanophosphate lithium ion batteries and systems, A123 Systems will provide Fisker Automotive with advanced automotive battery systems for the Fisker Karma plug-in hybrid electric vehicle (PHEV) that is due to launch later this year.

In addition to entering into the supply agreement, A123 also announced its intent to invest up to $23m in Fisker Automotive’s current funding round in order to establish a strategic relationship with the car company. The contemplated investment would consist of $13m in cash and $10m in A123 common stock. The company said the investment would align the interests of both companies in delivering PHEV technologies and optimise the performance of future vehicles.

Fisker Automotive and A123 will also collaborate on Fisker’s Project Nina platform, with the intent of having A123 supply batteries for the Nina vehicle that is expected to launch in 2012.

‘Fisker Automotive selected A123 because of the company’s ability to meet our performance needs and rapidly scale to our production volume,’ said Henrik Fisker, CEO of Fisker Automotive. ‘Fisker is committed to developing environmentally friendly cars that don’t sacrifice style or performance. A123’s technology will ensure the Karma delivers.’

The multi-year agreement provides that A123 is the selected battery system supplier for the Fisker Karma. A123 plans to manufacture the cells and systems at its Livonia, Michigan facility with production slated to commence later this year.

‘We believe the opportunity to supply batteries for Fisker’s premium plug-in hybrid vehicles is further confirmation of the competitive advantages of A123’s technology, including our ability to deliver on the critical safety, high power, useable energy and extended life requirements for PHEV applications,’ said David Vieau, president and CEO of A123 Systems. ‘A123 looks forward to a long partnership with Fisker Automotive that will help advance the future of transportation, improve fuel economy and reduce global CO2 emissions.’

The Fisker Karma is expected to have a range of 50 full-electric miles on a charge of A123’s lithium ion battery system and is designed to go from 0 to 60 mph in about six seconds, reaching a top speed of 125mph.
A123 Systems develops and manufactures advanced lithium ion batteries and battery systems for the transportation, electric grid services and consumer markets.

Headquartered in Massachusetts and founded in 2001, A123 was funded initially with a $100,000 grant from the US Department of Energy. Its proprietary nanoscale electrode technology is built on initial developments from the Massachusetts Institute of Technology. The company’s customers include Chrysler, Delphi, Shanghai Automotive Industry Corporation, Fisker Automotive, AES Energy Storage and The Black & Decker Corporation.

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Tags: energy efficiency, lithium ion batteries

This story was published on Friday, January 15th, 2010 at 12:47 pm and is filed under North America, companies, deals, energy efficiency. You can follow any responses to article entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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