A123 Systems Strikes Major Partnership With General Motors

Posted Aug 15, 2011

General Motors Corporation (NYSE:GM) and A123 Systems, Inc. (NASDAQ:AONE) have struck a major partnership. General Motors is contracting electric vehicle battery components and packs with A123. As a result, A123 will be ramping up their employee count at their headquarters and at their office in Ann Arbor, Michigan. A123 currently has about 1,000 employees in Michigan.

GM had validated A123 Systems’ nanophosphate lithium-ion battery technologies. GM will also work with A123 Systems to develop “calibrations and software controls for the battery system in preparation for production.” GM does not know yet which vehicles will be powered by A123’s batteries.

“GM is committed to offering a full line of electrified vehicles – each of which calls for different battery specifications,” stated GM executive director of global electrical systems, infotainment, and electrification Micky Bly. “We work with a variety of battery developers and A123’s advanced nanophosphate lithium ion technology offers ideal performance capabilities for a future electrified vehicle application.”

A123 is based in Massachusetts, but most of their operations is based in Michigan which includes a battery production facility in Livonia. In 2009 A123 Systems was awarded a $249.1 million economic stimulus grant from the government.