A123 Systems (Nasdaq:AONE), a developer and manufacturer of advanced Nanophosphate® lithium iron phosphate batteries and systems, announced that Advanced Traction Battery Systems (ATBS), A123's co-owned Shanghai-based joint venture company, has been selected to develop battery packs for a new plug-in hybrid electric (PHEV) sedan from Geely, one of the fastest-growing automakers in China and the parent company of Volvo Car Corporation. Under the terms of the development agreement, A123 will supply 20Ah prismatic cells to ATBS for the production of complete lithium ion battery packs for Geely's new PHEV, which is expected to launch in China in 2014.
"Geely is broadly recognized as one of the most innovative automakers in China, and the development of a wide range of new energy vehicles is a significant focus of our ongoing R&D efforts. A123's advanced battery systems demonstrate the strong performance, safety and life capabilities required for vehicle electrification, and we believe the technology is ideally suited to power our new PHEV," said Mr. You Yi, vice president of Zhejiang Geely Automobile Research Institute Co., Ltd.
Geely is a global automaker with more than 30 different models in its portfolio. In 2011, it produced more than 430,000 vehicles, and there are currently more than 2.2 million Geely vehicles on the road worldwide. A123's 20Ah prismatic cells are designed to deliver high power, increased safety, extended life and a higher usable energy over a wider state-of-charge, enabling Geely to optimize the efficiency of its design and maximize vehicle range.
"We believe that China, the largest and fastest growing auto market in the world, represents a significant opportunity for our technology, especially to help automakers leverage the government's ambitious requirements and lucrative incentives for the production of new energy vehicles," said Jason Forcier, vice president of the Automotive Solutions Group at A123. "Since forming our ATBS joint venture in 2009, we have made significant progress in delivering complete solutions to the passenger and commercial vehicle markets in China. Geely is at the forefront of electric vehicle development, and we believe that this agreement validates A123's battery technology as well as the systems engineering expertise we have helped cultivate at ATBS."