A123Systems Receives $30 Million Investment to Increase Production and Expand its Battery Product Portfolio into New Markets, including Hybrid Electric Vehicles; Current Round of Financing Brings Total Investment to $62 Million since Founding.WATERTOWN, Mass. -- A123Systems, developer of a new generation of Lithium-ion batteries, today announced it has completed its third round of private equity funding Equity funding An investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, giving the investor the advantages of insurance protection with the growth potential of a mutual fund. totaling $30 million. New investors in the company are GE, Alliance Capital Management and FA Technology Ventures. Also participating in this round are existing investors Motorola, Qualcomm, North Bridge Venture Partners, Sequoia Capital Sequoia Capital is a venture capital firm founded by Don Valentine in 1972. The firm's partners include Don Valentine, Pierre Lamond, Michael Moritz, Doug Leone, Mike Goguen, Mark Stevens, Jim Goetz, Sameer Gandhi, Roelof Botha, and Mark Kvamme. , Massachusetts Institute of Technology Massachusetts Institute of Technology, at Cambridge; coeducational; chartered 1861, opened 1865 in Boston, moved 1916. It has long been recognized as an outstanding technological institute and its Sloan School of Management has notable programs in business, , OnPoint, YankeeTek and Desh Deshpande, the company's Chairman of the Board. A123Systems will use its new capital infusion Capital infusion Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. to increase manufacturing capacity, to continue support for its current customer base and revenue growth, to accelerate the development of batteries for hybrid electric vehicles A hybrid electric vehicle (HEV) is a vehicle which combines a conventional propulsion system with an on-board rechargeable energy storage system (RESS) to achieve better fuel economy than a conventional vehicle without being hampered by range from a charging unit like an (HEV HEV abbr. hepatitis E virus HEV hemagglutinating encephalomyelitis virus of pigs. ) and to continue development of products for other markets demanding improved power technology. "A123Systems' advanced batteries have the potential to drastically lower the weight and cost of batteries for hybrid electric vehicles, bringing a new level of performance to automobile manufacturers," said David Vieau, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and President of A123Systems. "An A123Systems battery is projected to be 80% lighter than batteries used in current HEVs and will offer superior life and durability." Announced in November of last year, A123Systems' battery technology delivers up to 10X longer cycle life, 5X power gains and dramatically faster charge time over conventional high power battery technology, as validated by independent testing at commercial and government research labs. "The level of interest and excitement surrounding A123Systems clearly illustrates the momentum behind creating a new generation of batteries that will promote the development of clean technology applications," said Mark Huang, Senior Vice President of GE Commercial Finance - Technology Lending. A123Systems is already supplying batteries to the Black & Decker Corporation for use in a heavy-duty, 36-volt line of portable power tools. The company is also working with the U.S. Department of Energy as part of a major undertaking to develop battery materials for future use in hybrid electric vehicles. Preliminary performance results show a technology with great promise for the future of electric and hybrid electric vehicles. About A123Systems A123Systems is the developer of a new generation of Lithium-ion batteries that deliver previously unattainable levels of power, safety and life to a wide range of applications. These batteries enable manufacturers to eliminate the power technology constraints they face in developing and building new products. Founded in 2001, A123Systems' proprietary nanoscale At nanometer size. Any device only a few nanometers in size is nanoscale. See nanotechnology and nanometer. electrode technology is built on initial developments from Massachusetts Institute of Technology. For additional information please visit www.a123systems.com. |
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