A123 Systems has developed new technology that allows lithium ion batteries to work in extreme temperatures, which would eliminate the need for separate heating and cooling systems. This would make electric vehicles cheaper.
A123’s new technology is called Nanophosphate EXT, which could potentially increase the adoption of the company’s rechargeable batteries. Shares in A123 increased 61% to $1.67 on Tuesday as a result. About 26 million shares of the company were traded by 1730GMT, which is 17 times their ten-day average.
A123 said that Nanophosphate EXT would have the ability to work in a wide range of temperatures and lower costs. This will create new opportunities for its products in the the transportation and telecommunications markets. Previously the higher costs of lithium ion batteries held back their adoption on a large scale. The heating and cooling systems account for 10-20% of the total cost of lithium ion batteries.
A123’s stock is down about 96% from the $28 range it was trading at back in 2009. In 2009, A123 was given a $249 million grant by the Obama administration.