Lithium-ion battery maker A123Systems Inc. received yet
another round of private financing, this time pooling $69 million. General Electric Co. (NYSE:GE) provided $15 million, making it A123's biggest cash investor with more than a 10% stake. Also, Mark Little, GE's senior vice president and director GE Global Research, joined the board of A123.
To date, GE has invested
about $70 million in the firm. A123 says the new money will help create new jobs by expanding its facilities in Hopkinton, Mass., and Novi, Mich., as well as build new factories in Michigan.
A123 noted that in addition to private financing, it is seeking funds under federal and state stimulus and other programs to ramp up its production capabilities in Michigan. Watertown, Mass., A123 certainly welcomed news of Michigan Gov. Jennifer Granholm signing a bill into law last week, adding $220 million to the
refundable tax credit program, which she says is designed to make the state a front-runner for the emerging industry and the thousands of jobs that could go with it. The Chicago Tribune said the tax incentive program, started earlier this year, now has up to $555 million in credits available to companies.
A123 has gone a long way in
positioning itself in the battle to supply electric and hybrid cars with its batteries. Most recently, it formed an alliance with Chrysler LLC, where A123 would supply Chrysler with li-ion battery packs for electric vehicles that will hit showrooms late next year. -
Baz Hiralal
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