Friday, March 2, 2012

A123 Systems (AONE) Expands Partnership with SAIC Motor to Address Lithium Ion Battery Technology Demand in China

Today, A123 Systems, Inc. announced a planned expansion of its partnership with SAIC Motor Corporation Limited, which is China’s largest automaker. This will build on the existing partnership that was established between the two companies back in 2009, when Advanced Traction battery Systems (ATBS), a battery pack joint venture company, was formed.

Under a new framework agreement, A123 and SAIC Motor will carry out a feasibility study defining the business plan and investment requirement for a jointly developed battery manufacturing facility in China. It is anticipated that the proposed facility will serve the local market with an initial focus on transportation; this will enable A123 to meet the increasing demand for advanced lithium ion battery technology more quickly and cost-effectively. The agreements setting forth the terms and conditions for the proposed facility and its operations, currently in negotiations, are expected to be completed by September 2012.

Since the formation of ATBS, A123 has been a strong partner for SAIC Motor, supplying lithium ion battery systems for three of SAIC’s electric vehicles. SAIC sees potential for A123’s technology across several different Chinese markets, and the company anticipates that the expanded partnership will provide SAIC with increased opportunity to benefit from the rising demand for advanced lithium ion phosphate solutions.

SAIC Motor leads the Chinese auto market. The company’s total vehicle production exceeded 4 million vehicles in 2011.

A123 Systems, Inc. is a leader in developing and manufacturing advanced lithium ion batteries and energy storage systems for transportation, electric grid and commercial applications. The company’s Nanophosphate lithium iron phosphate technology, built on novel nanoscale materials initially developed at the Massachusetts Institute of Technology, is designed to deliver high power and energy density, improved safety and extended life. Leveraging cutting-edge technology, quality manufacturing and expert systems integration capabilities, A123 delivers innovative solutions that enable customers to create and market next-generation products. For further information, visit www.a123systems.com.

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