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General Electric Co. has invested $4 million in Norwegian electric car manufacturer Think Nordic ASA and made an additional undisclosed investment in lithium-ion battery developer A123Systems Inc., which will provide Think cars with batteries. Think unveiled the five-seat crossover concept car Th!nk Ox and plug-in electric car Th!nk City at the 78th International Motor Show in Geneva Wednesday and will power its vehicles with batteries from A123Systems. Fairfield, Conn.-based GE said in a statement it can help both companies commercialize their technologies to make electric transportation practical and affordable. The Th!nk Ox is close to the size of a sport utility vehicle but lighter and more aerodynamic, and the Th!nk City has a 100 mile range. Think is delivering its first cars in Norway, with international sales to follow later in the year. GE Energy Financial Services said its investment in A123Systems will help it roll out batteries for Think. GE is now A123Systems' largest cash investor, having put more than $20 million into the company. Past investors include Procter & Gamble Co. of Cincinnati, Alliance Capital Corp. of New York, Motorola Inc. of Schaumburg, Ill., Qualcomm Inc. of San Diego, North Bridge Venture Partners of Waltham, Mass., Sequoia Capital of Menlo Park, Calif., CMEA Ventures of San Francisco, FA Technology Ventures of Boston, Carruth Management LLC of Westborough, Mass., OnPoint Technologies of Winter Park, Fla., the Massachusetts Institute of Technology and Desh Deshpande, the company's board chairman. The latest investments were made by GE Energy Financial Services' recently expanded seven-member venture capital group, which has offices in Stamford, Conn., San Francisco and Munich. The group has invested nearly $100 million in 12 companies over the last 18 months. GE said the investments were part of its "ecomagination" initiative--its commitment to help customers meet environmental challenges while expanding its portfolio of cleaner energy products. "Our work with A123 and Think taps GE's unique combination of venture capital, engineering, process and commercial expertise to help burgeoning, next generation technology companies bring their innovative products to market," Kevin Walsh, managing director and leader of renewable energy investing at GE Energy Financial Services, said in the statement. Mark Little, senior vice president and director of GE Global Research, said the company's researchers are improving energy storage and conversion technology "as the key enabler of founder Thomas Edison's vision of electricity as a viable propulsion system for vehicles, ranging from automobiles to industrial vehicles and locomotives." A123Systems president and CEO David Vieau said GE's global research center has been working with it to develop safe and reliable battery-powered transportation, which allowed it to accelerate delivery of advanced battery solutions to Think. "Our newest collaboration with Think helps us achieve the large-scale production of batteries and integrate them into commercially available electric vehicles," he said. Think CEO Jan-Olaf Willums said the new relationship with GE "will help Think--the manufacturer of the first highway-approved electric car in mass production--to stay at the forefront of electric vehicle technology." GE's research includes a $5.6 million U.S. Energy Department contract to develop smaller, lower cost, higher performing hybrid drivetrain motors for hybrid electric vehicles. GE is also working on a $1.2 million project to develop advanced high temperature, high energy density capacitors and a $13 million project with the U.S. Federal Transit Administration and other industrial partners to build a prototype lightweight, battery-dominant zero emissions hybrid fuel cell bus. As of October, A123Systems had raised $132 million in venture financing since it was founded in 2002 with proprietary nanoscale electrode technology licensed from MIT. It raised $70 million last year alone. In August the Watertown, Mass.-based company announced that General Motors Corp. and A123Systems would be co-developing cells with A123System's nanophosphate battery chemistry for use in GM's electric drive E-Flex system. Attorneys from Wilmer Cutler Pickering Hale and Dorr LLP are providing counsel to A123Systems. -- Claire Poole
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