A123 Systems In Battery Supply Pact With Fisker Automotive A123 Systems In Battery Supply Pact With Fisker Automotive

After talks with EnerDel fell through, A123 has reached a multi-year supply agreement with Fisker Automotive.  In addition, A123 intends to invest $23 million in Fisker Automotive – $13 million of that in cash.  This is a huge coup for A123, who missed their first big opportunity to supply General Motors with battery packs for the Chevy Volt.
This powerhouse alliance is important to both companies, as A123 needs a strategic toe-hold in the domestic automotive battery market, and Fisker Automotive needs a battery that will help differentiate themselves from producers of other hybrid vehicles.  A123 can now look to expand to other automakers, and Fisker Automotive can claim rapid recharge / longer life capability due to the special chemistry of A123’s batteries.
Last year, A123 reached a supply / development agreement for hybrid and electric vehicle battery systems with SAIC Motor Corp., China’s largest automaker by volume.  Now, given A123’s recent IPO and their $249 million dollar grant from the Department of Energy, they have plenty of capital to expand their existing facilities to meet their new commitments.
As for EnerDel, they are concentrating on their supply agreements with Th!nk, who coincidentally share production with Fisker Automotive at Valmet, a contract manufacturing facility in Finland, known for their production of high end vehicles like the Porsche Boxters and Caymans.
[Source: Press Release]

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