A123 Systems had a tough second quarter with an increased loss and the loss of potential business with Chrysler. A123 had been named by Chrysler as its electric vehicle battery supplier early in 2009. Unfortunately, Chrysler's ENVI division was dissolved late last year following the company's bankruptcy process and Fiat canceled most of the electric vehicle projects. A123 was to have supplied batteries for the planned Fiat 500 EV, but Chrysler has reportedly brought in another supplier. That other supplier is probably Electrovaya because it is also supplying batteries for the Ram plug-in hybrid test fleet.
A123 will be supplying batteries to Fisker for the Karma PHEV and claims to have an exclusive development deal with another unnamed automaker.

A123 has also reported that its second-quarter loss grew to $34.2 million – up from $21.9 million in the same quarter last year – with revenues up 14 percent to $22.4 million. Meanwhile, the battery maker expects transportation to make up a bigger percentage of its business in the near- to mid-term. Increased business from heavy-duty manufacturers like Eaton and Navistar will up the transport share to 60-70 percent of its revenues.

Finally, A123 has spun off a new business called 24M Technologies that is partially funded by venture capital funds. 24M is developing battery solutions for grid power storage including wind and solar.

[Source: Earth2Tech, XConomy]


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