A123 Systems, LLC, a subsidiary of the Chinese

Wanxiang Group Wanxiang Group Corporation () is a Chinese Multinational corporation, multinational conglomerate (company), conglomerate, headquartered in Hangzhou, Zhejiang province, China. Its automotive components subsidiary (Wangxiang Qiaochao) is the larg ...

Holdings, is a developer and manufacturer of

lithium iron phosphate Lithium iron phosphate or lithium ferro-phosphate (LFP) is an inorganic compound with the formula . It is a gray, red-grey, brown or black solid that is insoluble in water. The material has attracted attention as a component of lithium iron phosp ...

batteries and

energy storage Energy storage is the capture of energy produced at one time for use at a later time to reduce imbalances between energy demand and energy production. A device that stores energy is generally called an accumulator or battery. Energy comes in ...

systems. The company was founded in 2001 by

Yet-Ming Chiang Yet-Ming Chiang (April 25, 1958) is a Taiwanese American materials scientist and engineer currently the Kyocera Professor at Massachusetts Institute of Technology. He has been influential in the development of new materials for energy storage, tra ...

, Bart Riley, and Ric Fulop. By 2009, it had about 2,500 employees globally and was headquartered in

Waltham, Massachusetts Waltham ( ) is a city in Middlesex County, Massachusetts, United States, and was an early center for the labor movement as well as a major contributor to the American Industrial Revolution. The original home of the Boston Manufacturing Company, th ...

.Global Cleantech 100
''

The Guardian ''The Guardian'' is a British daily newspaper. It was founded in 1821 as ''The Manchester Guardian'', and changed its name in 1959. Along with its sister papers ''The Observer'' and ''The Guardian Weekly'', ''The Guardian'' is part of the Gu ...

'', September 8, 2009. Its original product technology was based upon materials initially developed at the

Massachusetts Institute of Technology The Massachusetts Institute of Technology (MIT) is a private land-grant research university in Cambridge, Massachusetts. Established in 1861, MIT has played a key role in the development of modern technology and science, and is one of the ...

History

In November 2005, the company announced a new, faster-recharging lithium-ion battery system based on doped nanophosphate materials licensed from the

. In December 2006, the

United States Advanced Battery Consortium United States Council for Automotive Research LLC (USCAR) is an umbrella organization for collaborative research that comprises Ford Motor Company, General Motors and Stellantis. Its goal is to further strengthen the technology base of the U.S. au ...

(USABC) in collaboration with the U.S.

Department of Energy A Ministry of Energy or Department of Energy is a government department in some countries that typically oversees the production of fuel and electricity; in the United States, however, it manages nuclear weapons development and conducts energy-rel ...

(DOE) awarded the company a US$15 million development contract to optimize A123 Systems' proprietary doped nano-

phosphate In chemistry, a phosphate is an anion, salt, functional group or ester derived from a phosphoric acid. It most commonly means orthophosphate, a derivative of orthophosphoric acid . The phosphate or orthophosphate ion is derived from phospho ...

battery technology for

hybrid electric vehicle A hybrid electric vehicle (HEV) is a type of hybrid vehicle that combines a conventional internal combustion engine (ICE) system with an electric propulsion system ( hybrid vehicle drivetrain). The presence of the electric powertrain is intende ...

applications with a focus on power, abuse tolerance, durability and cost. USABC is an organization composed of

Chrysler LLC Stellantis North America (officially FCA US and formerly Chrysler ()) is one of the " Big Three" automobile manufacturers in the United States, headquartered in Auburn Hills, Michigan. It is the American subsidiary of the multinational automotiv ...

Corporation,

Ford Motor Company Ford Motor Company (commonly known as Ford) is an American multinational automobile manufacturer headquartered in Dearborn, Michigan, United States. It was founded by Henry Ford and incorporated on June 16, 1903. The company sells automobi ...

, and

General Motors Corporation The General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and ...

BAE Systems BAE Systems plc (BAE) is a British multinational arms, security, and aerospace company based in London, England. It is the largest defence contractor in Europe, and ranked the seventh-largest in the world based on applicable 2021 revenues. ...

announced that, from 2008, it would offer A123 Systems' lithium-ion battery technology as part of its

HybriDrive Propulsion System BAE Systems Electronic Systems (ES) is one of three operating groups of BAE Systems Inc., the North American subsidiary of the British global defence contractor BAE Systems PLC. History BAE Systems acquired Lockheed Martin Aerospace Electronic S ...

used in the 2008 version of the Daimler

Orion VII The Orion VII was a line of low-floor transit buses available in 30' rigid, 35' rigid, and 40' rigid lengths manufactured by Orion Bus Industries between 2001 and 2013 in three generations. The conventional powered buses, either with longitudinal ...

hybrid electric bus A hybrid electric bus is a bus that combines a conventional internal combustion engine propulsion system with an electric propulsion system. These type of buses normally use a Diesel-electric powertrain and are also known as hybrid Diesel-elect ...

es. As of September 7, 2009, more than 3,000 of the buses were in service. In May 2008, the

(USABC) in collaboration with the U.S.

(DOE) awarded the company a US$12.5 million grant to develop its lithium ion battery technology for plug-in hybrid electric vehicles. On March 5, 2008,

General Electric General Electric Company (GE) is an American multinational conglomerate founded in 1892, and incorporated in New York state and headquartered in Boston. The company operated in sectors including healthcare, aviation, power, renewable energ ...

, the company, and

Think Global Think Global was an electric car company located in Bærum, Norway, which manufactured cars under the ''TH!NK'' brand. Production of the Think City was stopped in March 2011 and the company filed for bankruptcy on June 22, 2011, for the fourth ti ...

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. After over $10 million in investment in the

Think City, A123 ceased production of its L20 battery pack for Think after a single day of production in December, 2008. In January 2009, A123 systems applied to the U.S. Department of Energy's

Advanced Technology Vehicles Manufacturing Loan Program Advanced Technology Vehicles Manufacturing (ATVM) Loan Program is a $25 billion direct loan program funded by Congress in fall 2008 to provide debt capital to the U.S. automotive industry for the purpose of funding projects that help vehicles ...

(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 Michigan () is a state in the Great Lakes region of the upper Midwestern United States. With a population of nearly 10.12 million and an area of nearly , Michigan is the 10th-largest state by population, the 11th-largest by area, and the ...

near Detroit. 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. In April 2009,

Chrysler Stellantis North America (officially FCA US and formerly Chrysler ()) is one of the " Big Three" automobile manufacturers in the United States, headquartered in Auburn Hills, Michigan. It is the American subsidiary of the multinational automoti ...

Corp. announced a contract with A123 to supply batteries for their ENVI EV vehicles. In August 2009, the company received a US$249 million grant from the U.S.

(ATVMLP) to build production facilities in Romulus and Livonia, Mich. 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. In September 2009, the company raised US$380 million after going public on the

NASDAQ The Nasdaq Stock Market () (National Association of Securities Dealers Automated Quotations Stock Market) is an American stock exchange based in New York City. It is the most active stock trading venue in the US by volume, and ranked second ...

stock exchange. In 2009, the company was included on

the Guardian ''The Guardian'' is a British daily newspaper. It was founded in 1821 as ''The Manchester Guardian'', and changed its name in 1959. Along with its sister papers ''The Observer'' and ''The Guardian Weekly'', ''The Guardian'' is part of the Gu ...

's "Global Cleantech 100" list. Later, A123 was selected to Technology Review Magazine's list of the 50 Most Innovative Companies 2011. Chrysler's ENVI division was disbanded by Nov 2009. In December 2009, the company formed a joint venture with

Shanghai Automotive Industry Corporation SAIC Motor Corp., Ltd. (formerly Shanghai Automotive Industry Corporation) is a Chinese state-owned automobile manufacturer headquartered in Anting, Shanghai. Founded in 1955, it is currently the largest of the " Big Four" state-owned car manu ...

(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). 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. 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 Livonia ( liv, Līvõmō, et, Liivimaa, fi, Liivinmaa, German and Scandinavian languages: ', archaic German: ''Liefland'', nl, Lijfland, Latvian and lt, Livonija, pl, Inflanty, archaic English: ''Livland'', ''Liwlandia''; russian: Ли ...

and another in

Romulus Romulus () was the legendary foundation of Rome, founder and King of Rome, first king of Ancient Rome, Rome. Various traditions attribute the establishment of many of Rome's oldest legal, political, religious, and social institutions to Romulus ...

. An untapped $120 million grant was abandoned by A123 by May 2012. 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. In March 2011, the company received its third contract from the

(USABC) in collaboration with the U.S.

(DOE): a 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). The company laid off 125 workers in December 2011 as A123 had to issue a battery recall for all batteries in a car developed by Fisker. A123 Systems had more than 3000 employees as of December 2012.

Investments

In 2010 the company invested in

Fisker Automotive Fisker Automotive was an American company known for producing the Fisker Karma, which was one of the world's first production luxury plug-in hybrid electric vehicles. It debuted at the 2008 North American International Auto Show, and first de ...

Karma Karma (; sa, कर्म}, ; pi, kamma, italic=yes) in Sanskrit means an action, work, or deed, and its effect or consequences. In Indian religions, the term more specifically refers to a principle of cause and effect, often descriptivel ...

with Ace Investments and

Kleiner Perkins Caufield & Byers Kleiner Perkins, formerly Kleiner Perkins Caufield & Byers (KPCB), is an American venture capital firm which specializes in investing in incubation, early stage and growth companies. Since its founding in 1972, the firm has backed entrepreneurs ...

. The company formed a joint venture with

SAIC Motor SAIC Motor Corp., Ltd. (formerly Shanghai Automotive Industry Corporation) is a Chinese state-owned automobile manufacturer headquartered in Anting, Shanghai. Founded in 1955, it is currently the largest of the " Big Four" state-owned car manu ...

to manufacture its batteries in China in early 2010. In February 2018, A123 announced an investment i
Ionic Materials
solid-state battery technology. Ionic is developing a unique polymer electrolyte that claims new levels of safety and performance in advanced batteries.

Product recall

In early 2012, the company announced the replacement of defective battery packs and modules supplied to about five customers, including

. The defect caused a

Fisker Karma The Fisker Karma is a luxury plug-in range-extended electric sports sedan produced by Fisker Automotive in 2012. The cars were manufactured at Valmet Automotive in Finland. The United States Environmental Protection Agency (EPA) rated th ...

to shut down in a

Consumer Reports Consumer Reports (CR), formerly Consumers Union (CU), is an American nonprofit consumer organization dedicated to independent product testing, investigative journalism, consumer-oriented research, public education, and consumer advocacy. Founded ...

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 were declared as not affected.

Wangxiang acquisition and bankruptcy

In August 2012, Chinese automotive components manufacturer

agreed to invest up to $465 million to acquire as much as 80% of A123 Systems; but the acquisition was not completed before A123 filed for

bankruptcy Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor ...

. 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. On October 16, 2012, A123 filed for bankruptcy protection under

Chapter 11 Chapter 11 of the United States Bankruptcy Code (Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, wheth ...

. On January 28, 2013, Wanxiang America purchased the preponderance of A123's assets out of bankruptcy for $256.6M and organized A123Systems, LLC. An earlier statement, released by A123 Systems in early October, said that it had entered an asset purchase agreement with

Johnson Controls Johnson Controls International is an American Irish-domiciled multinational conglomerate headquartered in Cork, Ireland, that produces fire, HVAC, and security equipment for buildings. As of mid-2019, it employed 105,000 people in around 2,0 ...

, with the stipulation that the company's bid must be approved by a US bankruptcy court and could be topped by a rival bidder. Johnson did not win the bankruptcy auction and withdrew its bid in early December. On October 16, 2012, A123 filed for bankruptcy protection under

. The filing listed assets of $459.8 million and liabilities of $376 million. The company also stated that its automotive assets would be purchased by

, a supplier to A123, for $125 million. On January 28, 2013, Wanxiang America purchased the preponderance of A123's assets out of bankruptcy for $256.6M and created A123Systems, LLC. The government business was sold to US firm Navitas Systems for $2.25m.

Lithium Werks sale

In March 2018, the US battery manufacturer

Lithium Werks Lithium (from el, λίθος, lithos, lit=stone) is a chemical element with the symbol Li and atomic number 3. It is a soft, silvery-white alkali metal. Under standard conditions, it is the least dense metal and the least dense solid e ...

announced it took over the Chinese factory of A123 Systems in

Changzhou Changzhou ( Changzhounese: ''Zaon Tsei'', ) is a prefecture-level city in southern Jiangsu province, China. It was previously known as Yanling, Lanling and Jinling. Located on the southern bank of the Yangtze River, Changzhou borders the provin ...

, plus the workforce and clients base in China, Europe and the United States. After the merger the

Texas Texas (, ; Spanish language, Spanish: ''Texas'', ''Tejas'') is a state in the South Central United States, South Central region of the United States. At 268,596 square miles (695,662 km2), and with more than 29.1 million residents in 2 ...

-based company owns factories in China and offices in the US, the Netherlands, Northern Ireland, the UK and Norway. Lithiumwerks continued the production of the 'nanophosphate' battery range, renaming the cells from 'A123' to 'Lithiumwerks' by the end of 2019. The A123 company said it wanted to concentrate on mobility solutions after the sale of their plants.

Products

Transportation

;Passenger vehicles *

, a

plug-in hybrid A plug-in hybrid electric vehicle (PHEV) is a hybrid electric vehicle whose battery pack can be recharged by plugging a charging cable into an external electric power source, in addition to internally by its on-board internal combustion engin ...

* Taxis in

Tokyo, Japan Tokyo (; ja, 東京, , ), officially the Tokyo Metropolis ( ja, 東京都, label=none, ), is the capital and List of cities in Japan, largest city of Japan. Formerly known as Edo, its metropolitan area () is the most populous in the world, ...

. Better Place is running a demonstration project with three electric taxis powered by A123 Systems batteries. * The

Roewe 750 The Roewe 750 is an executive saloon that was produced by Roewe in China between 2006 and 2016, based on the Rover 75. Overview Launched in October 2006, and codenamed ''SAC528'' during development, the wheelbase of the Roewe 750 is stretched by ...

hybrid, the Roewe 550 plug-in hybrid and a yet-to-be-announced Roewe-brand all-electric vehicle from

(SAIC), the largest automaker in China *

Chevrolet Spark EV The Chevrolet Spark ( ko, 쉐보레 스파크, translit=) is a city car manufactured by General Motors's subsidiary GM Korea from 1998 to 2022. The vehicle was initially developed by Daewoo and was introduced in 1998 as the Daewoo Matiz ( ko, � ...

, a

city A city is a human settlement of notable size.Goodall, B. (1987) ''The Penguin Dictionary of Human Geography''. London: Penguin.Kuper, A. and Kuper, J., eds (1996) ''The Social Science Encyclopedia''. 2nd edition. London: Routledge. It can be def ...

electric car An electric car, battery electric car, or all-electric car is an automobile that is propelled by one or more electric motors, using only energy stored in batteries. Compared to internal combustion engine (ICE) vehicles, electric cars are quie ...

to be produced by

General Motors The General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and ...

and scheduled to be sold in low volumes at select U.S. (including California) and global markets beginning in 2013. * In May 2011, A123 introduced a lithium ion 12V engine starter battery designed as a lighter-weight, longer-lasting and more environmentally friendly drop-in replacement for lead acid batteries. A123's Nanophosphate® Engine Start Battery was selected to R&D Magazine's 2011 R&D 100, which salutes the 100 most technologically significant products introduced into the marketplace over the past year. ;Commercial truck, bus, and off-highway *

Navistar International Navistar, Inc is an American holding company created in 1986 as the successor to International Harvester. Navistar operates as the owner of International-branded trucks and diesel engines. The company also produces buses under the IC Bus br ...

EStar:

Electric Vehicle An electric vehicle (EV) is a vehicle that uses one or more electric motors for propulsion. It can be powered by a collector system, with electricity from extravehicular sources, or it can be powered autonomously by a battery (sometimes cha ...

(EV) delivery vehicle *

Daimler Buses North America Daimler Buses North America (DBNA) was Daimler's North America bus division, incorporating the Orion, Setra, and Dodge Sprinter brands. Due to the spinoff of Daimler's truck division on December 1, 2021, it merged into Daimler Truck North Amer ...

(Orion VII). The number one selling

in the world. Operating in New York, San Francisco, Toronto, Dallas and other major cities. * Eaton:

Plug-in hybrid A plug-in hybrid electric vehicle (PHEV) is a hybrid electric vehicle whose battery pack can be recharged by plugging a charging cable into an external electric power source, in addition to internally by its on-board internal combustion engin ...

Trouble Truck based on Ford F55

*

Smith Electric Vehicles Smith Electric Vehicles (also known as Smith's) is a manufacturer of electric trucks. The company, founded in 1920 in the north of England, moved its headquarters to Kansas City, Missouri in 2011. Smith suspended all operations in 2017. Smith ...

Newton, an all-electric zero-emission delivery truck * ALTe, a maker of range-extended hybrid electric powertrain systems targeting the light-duty truck market ;Racing * 2009

McLaren Mercedes McLaren Racing Limited is a British motor racing team based at the McLaren Technology Centre in Woking, Surrey, England. McLaren is best known as a Formula One constructor, the second oldest active team, and the second most successful Formul ...

Formula 1 KERS race car * Killacycle, formerly the world's quickest electric vehicle, capable of accelerating from in less than 1 second. * Ohio State University's

Buckeye Bullet The Buckeye Bullet is a series of four experimental electric cars created by students from Ohio State University ( the Buckeyes) as a joint project with Venturi. The cars were designed to break the land speed record on the Bonneville Speedway, a ...

, an electric landspeed racer powered by A123's batteries, broke the international electric vehicle speed record in August 2010, reaching 307.666 m.p.h. * In May 2011, A123 signed an agreement with Mavizen, a leader in electric motorcycle racing technology, by which Mavizen will make A123's battery technology available for

TTXGP TTXGP are the official promoters of FIM eRoadRacing, an electric motorsport race series. Founded by Azhar Hussain MBE in 2008, TTXGP started life as the first zero-carbon, clean-emission race to take place at the Isle of Man TT as teams from aro ...

racing and other two-wheel motorsports. * An ultra-light electric vehicle powered by 880 A123 Li-PO4 batteries, Brigham Young University's Electric Blue Streamliner set a land speed record for the 'E1' vehicle class (cars less than 1,100 lbs), averaging 204.9 m.p.h. in two runs in September 2014.

Electric grid

* In November 2008, A123 entered into the electric grid market by delivering its first battery energy storage system to

AES Corporation The AES Corporation is an American utility and power generation company. It owns and operates power plants, which it uses to generate and sell electricity to end users and intermediaries like utilities and industrial facilities. AES is headquart ...

for use at several AES substations in Southern California. *In November 2009, A123 announced the commercial operation of a 12MW

operating reserve In electricity networks, the operating reserve is the generating capacity available to the system operator within a short interval of time to meet demand in case a generator goes down or there is another disruption to the supply. Most power sys ...

project at the AES Gener Los Andes substation in the Atacama Desert in Chile. * In December 2010,

secured a loan from the

United States Department of Energy The United States Department of Energy (DOE) is an executive department of the U.S. federal government that oversees U.S. national energy policy and manages the research and development of nuclear power and nuclear weapons in the United Stat ...

to fund a 20MW frequency regulation energy storage system using A123's battery technology at the AES Westover power plant in Johnson City, New York. * In February 2011, A123 announced its second project in Chile with AES Gener—a 20MW

energy storage system to be installed at a new 500MW power plant in Northern Chile called Angamos. * In July 2011, A123 announced a contract to supply a 500 kW advanced energy storage system to

Dongfang Electric Dongfang Electric Corporation () is a Chinese state-owned manufacturer of power generators and the contracts of power station projects. According to Platts, in 2009-10 the company was the second largest manufacturer of steam turbines by worldwid ...

, the third largest manufacturer of wind turbines in China and the country's largest exporter of power equipment, as a demonstration project to help evaluate how advanced energy storage can address the challenges associated with the rapid growth of wind power in China, where only about 72% of the country's wind turbines are connected to the power grid, according to the China Power Union. * In October 2011,

unveiled a 32 MW energy storage systems featuring A123's battery technology at the Laurel Mountain Wind Farm in West Virginia to be used for renewable integration and frequency regulation. As of its commissioning date it was the largest Lithium Ion battery energy storage system of its kind then in operation. This site was successfully commissioned in December 2011. * In March 2014, Japan'
NEC
announced its purchase of A123's grid energy storage business for $100 million.

Small applications

Black & Decker Black+Decker Inc. is an American manufacturer of power tools, accessories, hardware, home improvement products, home appliances and fastening systems headquartered in Towson, Maryland, north of Baltimore, Maryland, USA, where the company was o ...

and

DeWalt DeWalt Industrial Tool Company (stylized as DᴇWALT) is an American worldwide manufacturer of power tools and hand tools for the construction, manufacturing and woodworking industries, as well as home craftspeople. DeWalt is a registered trad ...

power tool lines were early adopters of A123 cells.

Cells

A123 had LiFePO4 Cells in the form 18650, 26650 and Pouch Cells with 14 and 20Ah. The company EVLithium reports that A123 has additional Pouch cells: A123 38AH NMC Lithium ion Pouch Battery and A123 LiFePO4 Battery 50AH http://www.evlithium.com/A123-Battery/

References

External links

* {{Official website, http://www.a123systems.com/ Battery manufacturers Grid energy storage Electric vehicle battery manufacturers Technology companies based in Massachusetts Manufacturing companies based in Massachusetts Companies based in Waltham, Massachusetts Manufacturing companies established in 2001 Technology companies established in 2001 2001 establishments in Massachusetts Companies that filed for Chapter 11 bankruptcy in 2012 Companies formerly listed on the Nasdaq 2009 initial public offerings

History

Investments

Product recall

Wangxiang acquisition and bankruptcy

Lithium Werks sale

Products

Transportation

Electric grid

Small applications

Cells

See also

References

External links