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By admin, May 28, 2010 9:12 pm

A123 Systems co-founder Ric Fulop is joining North Bridge Venture Partners this summer as an investing partner. A123’s 2009 IPO was one of the Waltham VC firm’s big hits in recent years, and Fulop left the Watertown battery-maker back in February.

“We’re thrilled to have him as a part of North Bridge,” managing director Anderson says. “He’s an energetic guy, a guy with a really broad view, and we think he’s going to be a huge plus for North Bridge and the region.” Anderson says that Fulop pitched his first company to North Bridge’s partners when he was about 18, but adds that North Bridge passed on every deal until A123, founded in 2001.

What exactly Fulop will focus on as a North Bridge partner isn’t yet determined. (The firm invests in sectors that include materials, semiconductors, healthcare, and services, and Fulop’s previous ventures range from wireless services to software to semiconductors to, with A123, a new kind of lithium ion battery.) “We really expect our partners to become leaders in their domain over time,” Anderson says.

In his low-key manner, Anderson crows about three of his firm’s recent successes — A123, Starent Networks, and Acme Packet — returning $350 million in profits to North Bridge’s investors over the last year. All three are based in Massachusetts. “We really believe that Boston still matters,” Anderson says.

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By admin, May 11, 2010 9:03 pm

Lithium-ion batteries and systems developer and manufacturer A123 Systems Inc announced that it has been selected by Eaton Corporation, a diversified industrial manufacturer, to supply battery systems for production of a hybrid power system to be installed on a Ford F550 based Plug-in Hybrid Electric Vehicle (PHEV). The program is partially funded by a $45 million grant in American Recovery and Reinvestment Act funds from the Transportation Electrification Initiative administered by the U.S. Department of Energy. It is managed by the Electric Power Research Institute (EPRI) under the lead of the South Coast Air Quality Management District (SC-AQMD) and is aimed to develop a production ready plug-in hybrid power train system suitable for widespread utility use in light/medium duty service vehicles.

These light/medium duty service vehicles, called “trouble trucks,” are used by utilities to inspect, repair and maintain their transmission and distribution lines. In addition to being driven thousands of miles per year, these trucks are often left idling in residential neighborhoods to power the truck’s equipment, thereby exposing operators to diesel exhaust, wasting fuel and emitting pollution. In contrast, the Eaton-powered PHEV trouble truck is intended to offer zero-emissions operation depending on how far the vehicle travels as well as lower operating costs.

“As fleet managers begin to consider emissions costs in addition to the lifetime costs of trucks, including acquisition costs, fuel and maintenance, the business case has become even more compelling,” said Jason Forcier, vice president, Automotive Solutions Group, A123 Systems. “A123 is serving a widening array of transportation applications and we are looking forward to further broadening our fleet portfolio and continuing to work with Eaton, a company committed to producing efficient, reliable and clean hybrid power systems.”

A123 Systems has been developing the battery system for much of 2010 with Eaton. The battery pack is expected to give the PHEV trouble truck a 10 mile range in EV mode or five to six hours of engine-off operation at the work-site. Eaton’s integrated charging system also charges the battery in less than 6 hours. The vehicle is expected to have a fuel savings of up to 63 percent, depending on drive cycle and the use of its HVAC system.

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By admin, April 23, 2010 9:11 pm

During an Earth Day stop at a commercial battery lab in Hopkinton, Gov. Deval Patrick pledged to invest billions to help his state overtake California as the sector’s top developer and user in the nation.

“I’m glad we have California looking over their shoulder,” he said. “What I want is California looking at our back.”

As part of that effort, Patrick announced a $5 million loan for A123 Systems, a manufacturer of lithium-ion batteries used in tools and hybrid cars.

While the company is based in Watertown and makes its batteries in China, the firm develops new products at Hopkinton’s South Street industrial park and assembles systems for public buses and power plants.

The $5 million loan comes from the state’s Clean Energy Center and will be forgiven if A123 meets two goals: an $80 million investment to expand its operation in the state within four years and the hiring of more than 250 workers, including at least 100 in MetroWest.

“This is a big deal for Hopkinton, it’s a big deal for MetroWest and it’s a very big deal for Massachusetts,” said Sen. Karen Spilka, D-Ashland.

The loan will be used to build battery-filled semitrailers for connection to the power grid.

The systems will allow utility companies to incorporate wind and solar energy, as well as store electrical surges for later use and supplement supply during peak demand. That means power plants won’t have to ramp up or scale back production, allowing more efficient operations and using less fuel.

“This is not some pie-in-the-sky idea,” Patrick said after holding up a toy trailer at the lectern. Earlier, CEO David Vieau mentioned that the company is also looking to develop home units to store solar power.

During his visit, Patrick announced that a commissioned report for the Clean Energy Center on the nation’s clean energy sector found that Massachusetts had climbed to No. 2, behind California, from No. 7 a few years ago.

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By admin, March 9, 2010 9:08 pm

A123 Systems announced that they are developing lithium ion battery systems for a joint venture project between Navistar and Modec to develop commercial electric vehicles. The batteries for the Navistar EV will be manufactured in Michigan with the vehicles being assembled in Indiana for a launch sometime this year.

These commercial EV’s will be designed for frequent stops, have a carrying capacity of two tons and feature a range of about 100 miles on a single charge. Navistar received nearly $40 million in stimulus funds last summer to help build the vehicles and the company hopes to build 400 of them this year, ramping up to a few thousand per year in the years to come.

A123 Systems VP Jason Forcier commented: “A123 is proud to partner with Navistar on an electric vehicle that will reduce operating emissions in urban areas.  Our ability to achieve impressive range with a battery that is safe, durable and reliable is a natural fit for Navistar’s electric vehicle program, and we are thrilled to showcase the U.S. advancements in the electrification of commercial transportation in Navistar’s vehicles.”

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By admin, January 18, 2010 9:13 pm

The key to improving electric and hybrid vehicle efficiency/driving range is to improve battery technology. As such, many of the world’s largest automakers have paired with battery makers to improve the technology.

As more and more hybrid and electric vehicles are announced and make their way to the U.S. market, there is an increasing demand for batteries for the vehicles. The demand in some instances is exceeding the capacity of some of the largest battery companies. A123 systems has announced that it is set to expand its battery making capacity significantly. A123 makes battery packs for several automakers including Fisker and Chrysler.

A123 plans to expand the production capacity of its Livonia and Romulus battery plants beyond their original capacities. The new Livonia facility is 300,000 square feet and is set to open by the middle of 2010. A123 had the capacity to build 169 megawatt-hours of batteries as of October 2009. By the end of 2010, the battery firm will have a manufacturing capacity of 360 megawatt-hours.

Autoblog Green reports that the 360 MWh capacity is enough battery packs for 24,000 plug-in hybrids with 15 kWh batteries or 320,000 conventional hybrids with 1.1KWh battery packs. With A123 providing battery packs for Fisker, the new capacity may prove too low even with the new expanded capacity. Fisker expects to sell 15,000 of its Karma plug-in hybrids each year.

David Vieau, President and Chief Executive Officer of A123 Systems, said, “The combination of proceeds from our recent IPO and funding support from the DOE has provided A123 Systems with the capital necessary to execute against our expansion program. Our strategy is to deploy capital as we see customer demand developing, and we are encouraged by recent developments and the momentum within our overall portfolio of customer relationships across our key target markets. Examples of such activity include today’s announcement of a newly established strategic relationship with Fisker Automotive, our recently signed joint venture with SAIC and expansion of our electric grid customer base just to name a few.”