GE to go in the automotive electric battery market

U.S. auto storage battery producer A123 Systems Inc., advertised on the 13th, has been winning financial gatherings for instance GE injected 69 million U.S. dollars, the future R & D and goods produced of automotive lithium batteries. GE’s greatest gold and the principle chief managers of the Company will be competent to receive seats.

A123 plans to build factories in Michigan have been the preparations for many years, is aimed at the production of automotive lithium-ion battery and battery module. Now smoothly raise the necessary funds will accelerate the construction progress of the workshop.

The company’s president and long-run (Dave Vieau) said that the success of fund-raising activities, showed that even in this economic situation, private investors are still bullish on the prospects of great interest in alternative energy technology.

GE’s power economic services part and the investment part, the injection of 15 million U.S. dollars to the A123, in order that a total of seven T to designated day total buying into 70 million U.S. dollars, matching to more than 10% of accessible shares.

Viaud pointed out that the new capital will help expand the scale of production through the A123 boost profitability. Expansion of production scale can also reduce the battery unit cost, thereby driving down power electric hybrid cars and car prices, enabling the company wide use of alternative energy technologies. Viaud disclosed, the company planning the production equipment is expected in 2013, the annual supply of five million systems to hybrid vehicles, or 500,000 electric cars electric plug.

GE Global Research department heads rito that a year afterwards, the storage battery electrical motor vehicles will be distribute to the general U.S. consumer. He said: “In the automotive development, the penetration rate of 5% exemplifies a immense market, I consider this happening will take position soon.” On the other hand, A123 accepted an injection of Michigan is a very good news. The state tolerated the ravages of the automobile development critical purpose in fresh years has been the forfeit of more conventional fabricating tasks. Industry to look for a way out, the head to carry on to endorse the long-term other pick vitality industry.

Injection before the report, Chrysler broadcast that the A123 has been chosen for its line of the new development of electric battery electric driven cars; China’s biggest state-owned vehicle constructor Shanghai Automotive Group is the biggest A123 customer. Even the general main heading is furthermore supplemented affray, the company’s Chevy Volt electric driven close electric driven vehicles is anticipated to launch next year, but the electric batteries constructed by other companies.

However, the market is still questioning the new generation car batteries market stability. Hybrid car sales momentum last summer after the Pan-feng, performance has been dragged down the overall automobile market frozen. Moreover, if Chrysler were forced to bankruptcy, it and the A123 project is also at stake, I am afraid.