05/14/2009 05:12 am ET Updated May 25, 2011

Battery Maker A123Systems Raises Additional Cash, Adds Top GE Exec to Board

So far the company has raised $69 million from General Electric (NYSE: GE) and other investors, the company said in a news release. 5

The funding is expected to be used to expand A123's battery cell and system production facilities in Hopkinton, Mass., and Novi, Mich., in addition to building new factories in Michigan, the company said. A123 also plans to fund the expansion with money from federal and state programs, including stimulus packages (see US car battery companies seek $1B in federal aid). The planned expansion would bring annual production capacity by 2013 to 5 million battery systems for hybrid electric vehicles, or 500,000 battery systems for plug-in electric vehicles. 2

Amid all the doom and gloom, there's some good news out there in automobile land - alternative auto land, that is. The new round of financing shows that not every funding source has dried up in the ongoing recession and that belief in the future of the electric and hybrid vehicle market remains strong in some quarters. 3

The company has its headquarters in Watertown, Mass. GE invested $15 million toward this latest round, bringing its total investment stake to 10 percent in the company. 1
  1. A123Systems Receives $69 Million From GE, Others (Green Tech (cnet))
  2. A123 Secures $69M for Smart Grid, Car Batteries (Cleantech)
  3. Battery Maker A123Systems Raises Additional Cash, Adds Top GE Exec to Board (Green Car Advisor (edmunds))
  4. Battery Maker A123Systems Charges Up With $69M (earth2tech)
  5. A123Systems Advances Lithium-ion Battery (UPI)

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