On March 5, 2008, A123 Systems announced its most recent business deal, the receipt of an investment worth $20 million from GE Energy Financial Services.
A123 Systems is a world leader in manufacturing superior quality lithium ion batteries. The company runs global manufacturing operations and possesses an efficient automotive lithium ion research and development team.A123 Systems was established in 2001 in Massachusetts.
Details of the Deal
Through this investment deal, GE Energy Financial Services, the financial services segment of GE has invested more than $20 million in A123 Systems.
After making this investment, GE has become A123 Systems’ largest cash investor.After completion of the investment deal, A123 Systems began carrying out research and technology development work with the help of GE experts in Global Research Center of Niskayuna, New York.
This joint research work will help A123 Systems in its battery development. A123 Systems has signed a commercial agreement to supply lithium-ion battery to Think, the leading manufacturer of environment-friendly vehicles.
In discussing this investment deal, David Vieau, CEO and President of A123 Systems, said that the joint research work by A123 Systems and GE Global Research Center would help A123 Systems to accelerate the supply of lithium ion batteries to Think. He also suggested that the investment deal of $20 million would further help A123 Systems in its large-scale production of batteries.