A123 Systems supplies electric batteries used by automakers, including Fisker. The company disclosed a memorandum of understanding with Wanxiang Group Corporation for a $450M capital injection. A123 said the investment would allow it to continue growing its core business and would remove uncertainty around its finances. Earlier in the year a battery issue uncovered during testing of Fisker's Karma caused major financial strain. In a May regulatory filing A123's auditors said they had "substantial doubt" about the company's ability to continue as a going concern. Fisker subsequently said it would replace all of the batteries in its cars as a result of the A123 issue. A123 Systems manufactures lithium-ion battery systems primarily for hybrid and electric vehicles and also develops grid-scale energy storage products. The company says it will use new funding to build battery factories in Michigan to serve key automotive clients such as Chrysler. A123 projects those factories will be able to produce battery systems for more than 5 million hybrid vehicles and 500,000 plug-in electric cars by 2013. It plans to allocate some of the recent funding to developing renewable energy storage solutions for wind and solar integration. The company is positioned to benefit from stimulus funds aimed at battery storage and has been described in the article as fairly recession resistant. A123 is based in Watertown, Mass., and has raised over $300 million to date.

Total raised

$465M

Funding rounds

2

Latest round

Equity

Latest activity

Aug 2012