Lithium ion battery maker A123 Systems has set their IPO terms. A123 Systems will be offering 25.68 million common shares at $8.50-$9.50 per share. Based on these shares and the price, A123 Systems would have an initial market cap of $954 million.

A123 has raised over $300 million from North Bridge Venture Partners, Qualcomm, Motorola, Procter & Gamble, Alliance Capital, Sequoia Capital, General Electric, CMEA Capital, OnPoint, FA Technology Ventures, Carruth Management, and MIT. A123 will also receive federal grants as promised by U.S. Vice President Joe Biden.

A123 won a major contract with General Motors to build lithium batteries for the Chevy Volt. (see first comment). Given A123’s rapid growth, business contracts, and government connections the company IPO will be one to watch out for.

General Motors subsidiary OnStar Corporation is best known for designing GPS technology, hands free calling, 24 hour emergency access, and turn by turn navigation.  Earlier today OnStar tracked a kidnapper in Fort Wayne and revealed his location to the police.

Police officers stopped the non-custodial father that kidnapped his three children in Detroit.  The father used a gun to abduct Alannah (2 years old), Ajani (5 years old), and Amari (7 years old).  The children were rescued unharmed but were in “extreme danger” when they were kidnapped.  An Amber alert was issued on Sunday night around 8PM after the abduction took place.

The suspect was Anthony Adams of Cheekawaga, New York.  Adams was arrested on I-69 north of Illinois Road after Fort Wayne.  Adams was arrested on gunpoint and is being held without bail at the Allen County Jail.  Adams faces five previous counts of operating a vehicle while intoxicated, three of the times involving the endangerment of putting the children at risk.

Ed Whitacre Jr. is the former CEO of AT&T.  He helped rebuild AT&T when it was the U.S. Department of Justice divested the Bell System from AT&T.  AT&T was the largest corporation in the world up until then.  Whitacre has now been chosen by the U.S. government to lead the new General Motors once it emerges from Chapter 11 bankruptcy.

“I don’t know anything about cars,” stated Whitacre in an interview with Bloomberg. “A business is a business, and I think I can learn about cars. I’m not that old, and I think the business principles are the same.”

Whitacre arrived to AT&T through a series of acquisitions.  He became CEO of SBC in 1988 and then bought Pacific Telesis (1997), SNET (1998), Comcast Cellular (1999), Ameritech (1999), and then AT&T (2005).

[via BloggingStocks]

Segway and GM are partnering on a project called the P.U.M.A. (Personal Urban Mobility & Accessibility). The P.U.M.A. is basically a two-person Segway that is made for city driving only since it tops at 35MPH and has about a 35-mile range on lithium ion batteries. Currently the P.U.M.A. is in prototype stages so the picture above does not look impressive at all. It is not weather-friendly yet. Between Segway and GM, they hope to roll this dinky car into production by 2012. Check out a video demo of it below:

GM and Chrysler received $13.4 billion in emergency loans to help keep them afloat.  The loans were given even though there was tremendous controversy around it.  Governor Jennifer Granholm of Michigan decided that she did not want to take a chance for the automotive companies to revive themselves with just federal loans so she decided to offer major tax incentives to battery firms.  If these companies are lured into Michigan, it makes it easier for automotive companies to use their battery technology directly.

This is especially important since hybrid and plug-in vehicles are becoming a heavy focus for the big three automotive companies.  General Motors is investing a large amount of money into the development of the Chevy Volt.  Ford has several hybrid vehicles being manufactured such as the Fusion and the Escape.  And Chrysler has two SUV hybrids: the Durango and the Aspen.

Lithium ion batteries are extremely important for any hybrid vehicle.  “It is imperative that Michigan possess this technology to keep Michigan the center of car manufacturing,” stated Senator John Pappageorge, member of the Michigan State Senate.  The U.S. as a whole is lacking battery technology companies according to Granholm.  It is not just the state.  The batteries will store energy in cars, homes, and businesses too.

“All of that we want to make a big play for Michigan,” stated Granholm. “We want it to be an American solution produced by American workers.”

The state of Michigan is offering the battery companies refundable tax credits.  These are more than just tax breaks.  Refundable tax credits is when the state writes the companies a check if the credits exceed tax liabilities.  The Senate passed the bill 31-3 and the House 94-0.  Before the bill passed, the cost of the bill was scaled back by nearly $200 million.

General Motors Corporation (NYSE:GM) has a blog written by Bob Lutz, Vice Chairman of the car company.  Lutz’s blog is called FastLane.  FastLane became so popular that Saturn, a General Motors subsidiary decided to create a blog and social network of their own called ImSaturn.  

“I plan to post there periodically, along with many Saturn team members.” stated Jill Lajdziak, General Manager of Saturn.  ”You’ll find news about Saturn and see photos and videos you haven’t seen anywhere else.”

ImSaturn has a site for Astra enthusiasts, 200,000 miles+ group, a forum for Ion owners, a Tunes Club.  Of the users that register, the first 400 will receive a free t-shirt.  There is also a blog written by Saturn employees about what it is like working for the car company.  Fellow Michigan State alumnus, Eric Cochran wrote an article about his first day on the Saturn Marketing Team entitled, “My First Big Person Job.”

Through ImSaturn, users can create their own Saturn blogs and upload photos/videos.  Saturn Corporation is headquartered in Detroit, Mich.