A123 Systems

A123 Systems, LLC.
Subsidiary
Founded 2001
Founder Yet-Ming Chiang, Bart Riley and Ric Fulop
Headquarters Livonia, Michigan, U.S.
Products Electric vehicle batteries, batteries for various commercial products
Owner Wanxiang America Inc.
Number of employees
 2000+
Parent Wanxiang Group
Website a123systems.com

A123 Systems, LLC, a wholly owned subsidiary of Wanxiang Group, is a developer and manufacturer of advanced lithium-ion (lithium iron phosphate) batteries and energy storage systems for transportation and other commercial and industrial applications.

The company was founded in 2001 by Dr. Yet-Ming Chiang, Dr. Bart Riley, and Ric Fulop. By 2009, it had about 2,500 employees globally and was headquartered in Waltham, Massachusetts.[1] The company's original product technology was based upon materials initially developed at the Massachusetts Institute of Technology.

In 2010, A123 received a US$249 million grant from the U.S. Department of Energy for building battery production facilities. Approximately $129 million of the grant was used to build a 550 MWh battery plant in Livonia and another in Romulus.[2] An untapped $120 million grant was abandoned by A123 by May 2012.[3] The company laid off 125 workers in December 2011 as demand for partner Fisker's automobiles had slackened.[4] A123 Systems had more than 3000 employees as of December 2012.[5]

In August 2012, Chinese automotive components manufacturer Wanxiang Group agreed to invest up to $465 million to acquire as much as 80% of A123 Systems;[6] but the acquisition was not completed before A123 filed for bankruptcy. On October 16, 2012, A123 filed for bankruptcy protection under Chapter 11, Title 11, United States Code. On January 28, 2013, Wanxiang America purchased the preponderance of A123's assets out of bankruptcy for $256.6M and organized A123Systems, LLC.[2][7]

An earlier statement, released by A123 Systems in early October, said that it had entered an asset purchase agreement with Johnson Controls, with the stipulation that the company's bid must be approved by a US bankruptcy court and could be topped by a rival bidder.[8] In the event, Johnson did not win the bankruptcy auction and withdrew its bid in early December.[5]

In early October 2012, the A123 Systems' stock was trading for 27 cents per share, down from a 52-week high of $4.44 per share about a year beforehand.[9]

History

Advanced Research and Government Solutions Group, Ann Arbor, Michigan

In November 2005, the company announced a new, higher power, faster-recharging lithium-ion battery system[10] based on doped nanophosphate materials licensed from Massachusetts Institute of Technology.

In December 2006, the United States Advanced Battery Consortium (USABC) in collaboration with the U.S. Department of Energy (DOE) awarded the company a US$15 million development contract to optimize A123 Systems' proprietary doped nano-phosphate battery technology for hybrid electric vehicle applications with a focus on power, abuse tolerance, durability and cost. USABC is an organization composed of Chrysler LLC Corporation, Ford Motor Company, and General Motors Corporation.[11]

BAE Systems announced that, from 2008, it would offer A123 Systems' lithium-ion battery technology as part of its HybriDrive Propulsion System used in the 2008 version of the Daimler Orion VII hybrid electric buses. As of September 7, 2009, more than 3,000 of the buses were in service.[12]

In May 2008, the United States Advanced Battery Consortium (USABC) in collaboration with the U.S. Department of Energy (DOE) awarded the company a US$12.5 million grant to develop its lithium ion battery technology for plug-in hybrid electric vehicles.[13]

On March 5, 2008, General Electric, the company, and Think Global announced that the three firms had entered a partnership to enable global electrification of transportation. GE invested US$20 million in the company to help it roll out batteries for Think. The company and Think at the same time signed a commercial supply agreement. The partnership was announced at the 78th annual international Motor Show in Geneva.[14] After over $10MM in investment in the Think Global Think City, A123 ceased production of its L20 battery pack for Think after a single day of production in December, 2008.

In January 2009, the company applied to the U.S. Department of Energy's Advanced Technology Vehicles Manufacturing Loan Program (ATVMLP) for US$1.84 billion in direct loans to support the construction of new lithium-ion battery manufacturing facilities in the United States, locating the first plant in southeast Michigan near Detroit.[15] The application was still pending as of early 2012, the company estimated that it might be allowed to borrow up to US$233 million from the program.[16]

In April 2009, Chrysler Corp. announced a contract with A123 to supply batteries for their ENVI EV vehicles.[17]

In August 2009, the company received a US$249 million grant from the U.S. Department of Energy's Advanced Technology Vehicles Manufacturing Loan Program (ATVMLP) to build production facilities in Romulus and Livonia, Mich.[18] after it received a US$125 million in tax credits and incentives from the Michigan Economic Development Corporation in spring and a US$10 million grant from the state in fall 2008.[19]

In September 2009, the company raised US$380 million after going public on the NASDAQ stock exchange.[20]

Chrysler's ENVI division was disbanded by Nov 2009.[21]

In December 2009, the company formed a joint venture with Shanghai Automotive Industry Corporation (SAIC), the largest automaker in China. This was the first joint venture between a Chinese automaker and a non-Chinese battery supplier. The new venture is called Advanced Traction Battery Systems (ATBS).[22]

In August 2010, A123's co-founder Professor Yet-Ming Chiang spun off a new company from A123 named 24M Technologies, which makes technology that combines concepts in current lithium ion batteries with flow batteries, where tanks of liquid electrolytes combine to create an electric current.[23]

In September 2010, the company opened the largest lithium ion battery manufacturing facility in North America in Livonia, Michigan. When fully operational, the factory is expected to be capable of producing battery packs for the equivalent of up to 30,000 electric cars per year.[24]

In March 2011, the company received its third contract from the United States Advanced Battery Consortium (USABC) in collaboration with the U.S. Department of Energy (DOE): an US$8 million advanced battery development contract to continue developing its Nanophosphate® lithium ion battery systems to meet USABC’s target application for a Power-Assist Hybrid Electric Vehicle (PAHEV) Low-Energy Energy Storage System (LEESS).[25]

Product recall

In early 2012, the company announced the replacement of defective battery packs and modules supplied to about five customers, including Fisker Automotive. The defect caused a Fisker Karma to shut down in a Consumer Reports test. It estimated the recall would cost about US$55 million. Fisker reduced its purchase order of battery from the company to lower its inventory. Cylindrical cells made in China that are used by BMW and others are not affected.[16]

Bankruptcy filing

On October 16, 2012, A123 filed for bankruptcy protection under Chapter 11, Title 11, United States Code. The filing listed assets of $459.8 million and liabilities of $376 million.[26][27] The company also stated that its automotive assets would be purchased by Johnson Controls, a supplier to A123, for $125 million.[28] On January 28, 2013, Wanxiang America purchased the preponderance of A123's assets out of bankruptcy for $256.6M and organized A123Systems, LLC.[2][7] The government business was sold to US firm Navitas Systems for $2.25m.[29]

Products

Transportation

Fisker Karma plug-in hybrid electric vehicle (PHEV) is powered by an advanced lithium ion battery system from A123
Passenger vehicles
Commercial truck, bus, and off-highway
Racing

Electric grid

Small applications

Black & Decker and DeWalt power tool lines were early adopters of A123 cells.

Investments

In 2010 the company invested in Fisker Automotive's Karma with Ace Investments and Kleiner Perkins Caufield & Byers.[50]

The company formed a joint venture with SAIC Motor to manufacture its batteries in China in early 2010.[51]

Recognition

In 2009, the company was included on the Guardian's "Global Cleantech 100" list.[1] Later, A123 was selected to Technology Review Magazine’s list of the 50 Most Innovative Companies 2011.[52]

See also

References

  1. 1 2 Global Cleantech 100 The Guardian, September 8, 2009.
  2. 1 2 3 Vlasic, Bill (May 14, 2013). "Chinese Creating New Auto Niche Within Detroit". New York Times. p. A1.
  3. ↑ "A123 First Quarter 2012 Earnings" (PDF). A123 Systems. May 15, 2012.
  4. ↑ Nathan Bomey (Nov 26, 2011). "A123 Systems lays off 125 workers at Michigan battery plants". Ann Arbor.com.
  5. 1 2 "China's Wanxiang wins auction for A123". CNN Money. 10 December 2012. Retrieved 31 January 2013.
  6. ↑ "A123 Systems and Wanxiang Group Corporation Execute Definitive Agreements for Wanxiang's Strategic Investment in A123". A123systems.com. August 16, 2012. Retrieved 2012-10-17.
  7. 1 2 Loveday, Eric (January 31, 2013). "Wanxiang Gets Final Approval to Buy A123 Systems". Reuters. Retrieved February 8, 2013.
  8. ↑ Grevatt, Jon (2012-10-24). "Wanxiang looks to courts over A123 Systems acquisitions". Jane's Defense Weekly.
  9. ↑ Bomey, Nathan (October 7, 2012). "Chinese firm positioned to acquire U.S.-funded battery maker A123 Systems". Detroit Free Press. Retrieved 2012-10-17.
  10. ↑ "''EV World'' "A123Systems Introduces New Generation Lithium-Ion Battery"". Evworld.com. Retrieved April 1, 2012.
  11. ↑ "USABC Awards $15 Million Battery Technology Development Contract to A123Systems". Retrieved December 8, 2006.
  12. ↑ "3,000 Hybrid Buses: Daimler Buses North America Reaches Sales Milestone" (Press release). Oriskany, New York and Mississauga, Ontario: Daimler Buses North America. September 2, 2009. Retrieved September 12, 2016.
  13. ↑ "USABC AWARDS $12.5 MILLION BATTERY TECHNOLOGY DEVELOPMENT CONTRACT TO A123SYSTEMS". Archived from the original on May 11, 2008. Retrieved May 5, 2008.
  14. ↑ A123 Systems press release
  15. ↑ "Renewable Energy News, Jobs, Events, Companies, and more". Renewable Energy World. Retrieved April 1, 2012.
  16. 1 2 Craig Trudell and Alan Ohnsman (Mar 26, 2012). "A123 Replacing Batteries That Led to Fisker Karma Shutdown". BusinessWeek.
  17. ↑ Jeremy Korzeniewski RSS feed. "Chrysler to use A123 cells in its electric vehicles". Autobloggreen.com. Retrieved April 1, 2012.
  18. ↑ "President Obama Announces $2.4 Billion in Grants to Accelerate the Manufacturing and Deployment of the Next Generation of U.S. Batteries and Electric Vehicles". Archived from the original on August 6, 2009. Retrieved August 5, 2009.
  19. ↑ Nathan Bomey (Dec 2, 2011). "Analysis: A123 Systems layoffs highlight challenges for Michigan's budding battery industry". Ann Arbor.com.
  20. ↑ Hargreaves, Steve (September 24, 2009). "AONE IPO charges car battery market". CNN.
  21. ↑ Kevin Krolicki (Nov 6, 2009). "Chrysler dismantles electric car plans under Fiat". Reuters.
  22. ↑ Gupta, Poornima (December 18, 2009). "A123 Systems, SAIC to set up China car battery JV". Reuters. Retrieved December 17, 2009.
  23. ↑ LaMonica, Martin. "A123 spinoff 24M funded for novel energy storage". Archived from the original on August 24, 2010. Retrieved August 15, 2010.
  24. ↑ "U.S. Li-ion battery production ramping up". Automotive Engineering International. Retrieved September 16, 2010.
  25. ↑ "USABC AWARDS $8 MILLION ADVANCED BATTERY TECHNOLOGY CONTRACT TO A123 SYSTEMS". Archived from the original on April 30, 2011. Retrieved March 23, 2011.
  26. ↑ "Battery maker A123 Systems files for bankruptcy". Reuters. October 16, 2012. Retrieved 2012-10-17.
  27. ↑ Aaron Smith, and Emily Fox (October 16, 2012). "Car battery maker A123 files for bankruptcy". CNN. Retrieved October 16, 2012.
  28. ↑ Hyde, Justin (October 16, 2012). "Battery builder A123 Systems that won $249 million federal grant files for bankruptcy". Yahoo Motormatic. Retrieved October 16, 2012.
  29. ↑ "China's Wanxiang wins approval to buy US battery maker". BBC. Jan 30, 2013.
  30. ↑ Umali, Claire M. (April 29, 2010). "In Tokyo, taxis are going electric too". Retrieved 12 September 2016.
  31. ↑ Motavalli, Jim (November 9, 2010). "A123 Batteries Slated for Chinese Electric Car". The New York Times "Wheels" blog. The New York Times Company.
  32. ↑ Jonathan Schultz (2011-10-12). "Chevrolet to Sell Purely Electric Spark Hatchback in U.S.". The New York Times. Retrieved October 12, 2011.
  33. ↑ "Chevrolet to produce Spark battery electric vehicle for US and global markets starting in 2013 with A123 Systems pack; EN-V gets a Chevrolet badge". Green Car Congress. October 12, 2011. Retrieved October 12, 2011.
  34. ↑ "12-volt battery gets a makeover as automakers shift to more electric parts". Automotive News. Retrieved May 10, 2011.
  35. ↑ "R&D Magazine 2011 R&D 100 Winners". Retrieved June 22, 2011.
  36. ↑ "A123 Systems to supply battery modules to Smith Electric Vehicles for electric trucks". Green Car Congress.
  37. ↑ "ALTe SIGNS LONG-TERM SUPPLY AGREEMENT WITH A123 SYSTEMS FOR ADVANCED LITHIUM ION BATTERY PACKS".
  38. ↑ "McLaren Snags First F1 KERS Win; Custom A123Systems Cells with More Than 20,000 W/kg". Retrieved July 27, 2009.
  39. ↑ "The KillaCycle – New World Motorcycle Speed Record". Retrieved 12 September 2016.
  40. ↑ "Ohio State's Buckeye Bullet Smashes World Record For Fastest Electric Car".
  41. ↑ "Mavizen is proud to announce a supply and distribution agreement with A123 Systems by which Mavizen will offer A123's advanced Nanophosphate® lithium ion battery technology for two-wheeled high-performance motorsports applications.". Mavizen.com. Retrieved May 1, 2011.
  42. ↑ "Electric Car Breaks 200 MPH, Sets New World Land Speed Record".
  43. ↑ "A123 Systems Gets on the Grid". Earth2Tech.com. GigaOM. Retrieved November 21, 2008.
  44. ↑ "AES Installs A123 Energy Storage System in Chile". SustainableBusiness.com. Retrieved November 11, 2009.
  45. ↑ "AES Completes $17M DoE Loan on Energy Storage Project". Energy Storage Trends. Retrieved December 24, 2010.
  46. ↑ "A123 supplies giant battery for 'hybrid power plant'". CNET.com. Retrieved February 7, 2011.
  47. ↑ Fehrenbacher, Katie (July 26, 2011). "A123 Systems Hooks Into China's Grid". The New York Times Company. Retrieved July 26, 2011.
  48. ↑ "China's wind power has faulty connection". Asia Times. Archived from the original on June 18, 2010. Retrieved June 16, 2010.
  49. ↑ Wang, Ucilia (October 27, 2011). "The World's Largest Lithium-Ion Battery Farm Comes Online". Forbes. Retrieved October 27, 2011.
  50. ↑ "$ 115 million private funding hastens Fisker Karma's development". January 18, 2010. Archived from the original on August 8, 2010. Retrieved September 12, 2016.
  51. ↑ Abuelsamid, Sam (December 21, 2009). "A123 Systems and Shanghai Automotive form battery JV". Retrieved September 12, 2016.
  52. ↑ "The 50 Most Innovative Companies 2011". Technology Review. Retrieved October 16, 2012.

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