A123Systems Joins with Shanghai Automotive Building Batteries
In brief: Battery innovator and recent IPO A123Systems has entered a joint venture with Shanghai Automotive after the Chrysler deal fell through.
When Chrysler dropped their entire battery-electric line, A123Systems was left without a major outlet for its battery systems. Undaunted, the battery maker soldiered on to find a new major buyer.
General Motors had already gone to LG Chem, Ford has Johnson Controls, and Daimler has Tesla Motors. Things looked grim for the battery company until recently.
With plans for a Detroit battery plant likely to be put on hold, with no outlet for those batteries, A123 suddenly released the news that they had found a car maker interested in their technology.
Looking to China, A123Systems found friendship with Shanghai Automotive Industries Company (SAIC). Of course, these batteries will be made in China, so the Detroit plant might still be a no-go.
The new venture will be owned primarily by SAIC, but A123 will have a large chunk and will participate in profit-sharing rather than straight battery sales.
These will go into the SAIC Rowew hybrid and PHEV 750 and 550 models and sales to other companies may be in the offing as well.
And so ...
Good news for A123, one of the most innovative of the new battery technology companies.
Photo credits: A123
Article Source: Reuters
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