A123 Systems Company Overview and History

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A123 Systems was founded in 2001 by a team of researchers at the Massachusetts Institute of Technology (MIT).

The company's name, A123, was derived from the atomic number of the element sodium, which is a key component in the company's battery technology.

A123 Systems initially focused on developing advanced battery systems for hybrid and electric vehicles, as well as for energy storage applications.

A123's innovative battery technology was designed to be more efficient, durable, and cost-effective than traditional battery systems.

The company's early success led to partnerships with major automakers, including General Motors and Ford.

Company History

A123 Systems was founded in 2001 by Dr. Yet-Ming Chiang, Dr. K. M. Lantz Scholz, and Dr. Joanne Chen, with the goal of developing and commercializing advanced battery technologies.

The company's early work focused on developing lithium-ion batteries for the consumer electronics market.

A123 Systems' first major breakthrough came in 2002 with the development of a new lithium iron phosphate (LiFePO4) battery chemistry that offered improved safety and performance.

Recommended read: Tianqi Lithium

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This innovation caught the attention of major automakers, who began to see the potential for A123 Systems' batteries in electric vehicles.

By 2005, A123 Systems had already secured partnerships with several major automakers, including General Motors and Ford.

The company's batteries were used in the Chevrolet Volt, the first mass-produced plug-in hybrid electric vehicle, which hit the market in 2010.

A123 Systems' batteries were also used in the Fisker Karma, a luxury electric vehicle that debuted in 2011.

In 2012, A123 Systems filed for bankruptcy and was subsequently acquired by the Chinese conglomerate Wanxiang Group.

Despite the bankruptcy, A123 Systems' technology continued to be used in various applications, including energy storage systems for the grid.

Product and Technology

A123 Systems had a diverse range of lithium-ion cells, including 18650, 26650, and pouch cells with 14 and 20 Ah capacities.

Their cells were designed for various applications, with some being specifically tailored for electric vehicles.

A123 Systems also had a significant presence in the field of lithium-ion battery technology, with 167 patents filed under their name.

These patents covered a wide range of topics, including lithium-ion batteries, battery electric cars, and rechargeable batteries.

  • lithium-ion batteries
  • battery electric cars
  • rechargeable batteries

One notable patent was filed on August 28, 2019, and granted on April 8, 2025, for a technology related to polymer binder additives for electrodes.

Cells

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A123's battery cells are quite impressive. They come in various forms, including 18650, 26650, and Pouch Cells.

The company EVLithium reports that A123 has additional Pouch cells: A123 38AH NMC Lithium ion Pouch Battery and A123 LiFePO4 Battery 50AH.

A123's Pouch Cells are available in two capacities: 14 and 20 Ah.

A different take: Battery Ventures

Energy Storage

Energy Storage is a vital aspect of our daily lives, and it's fascinating to see how companies are innovating in this space. Companies in the Energy Storage space are developing and manufacturing energy storage solutions such as lithium-ion batteries, solid-state batteries, and related software for battery management.

One company, A123 Systems, has made significant contributions to the field with its patents. A123 Systems has filed 167 patents, showcasing the company's commitment to innovation.

Here are some of the patents filed by A123 Systems, categorized for easier understanding:

  • lithium-ion batteries
  • battery electric cars
  • rechargeable batteries

A123 Systems has also patented a specific technology related to polymer binder additives for electrodes. This innovation has a direct impact on the development of battery electric cars and lithium-ion batteries.

Transportation

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In the world of transportation, electric and hybrid vehicles are gaining traction. The Fisker Karma is a plug-in hybrid that's making waves, while Better Place is running a demonstration project with three electric taxis powered by A123 Systems batteries in Tokyo, Japan.

Several major automakers are also getting in on the action, including Shanghai Automotive Industry Corporation (SAIC), which is producing the Roewe 750 hybrid, the Roewe 550 plug-in hybrid, and an all-electric vehicle.

The Chevrolet Spark EV is a cityelectric car that will be produced by General Motors and sold in select markets, including California, starting in 2013. This vehicle is part of a growing trend towards electric and hybrid vehicles in the automotive industry.

Here are some examples of electric and hybrid vehicles in the transportation sector:

  • Fisker Karma, a plug-in hybrid
  • Taxis in Tokyo, Japan powered by A123 Systems batteries
  • Roewe 750 hybrid, Roewe 550 plug-in hybrid, and an all-electric vehicle from Shanghai Automotive Industry Corporation
  • Chevrolet Spark EV, a cityelectric car

In addition to passenger vehicles, electric and hybrid technology is also being used in delivery vehicles. The Navistar International EStar is an electric vehicle delivery truck, while the Smith Electric Vehicles Newton is an all-electric zero-emission delivery truck.

Investments and Acquisitions

Credit: youtube.com, A123 Systems Deal with Wanxiang Approved

A123 Systems made significant investments in various projects, including a joint venture with SAIC Motor to manufacture batteries in China in early 2010.

In 2010, the company invested in Fisker Automotive's Karma with Ace Investments and Kleiner, Perkins, Caufield & Byers.

A123 announced an investment in Ionic Materials' solid-state battery technology in February 2018, which aims to develop a unique polymer electrolyte for advanced batteries.

The company's investments and partnerships were aimed at expanding its battery technology and manufacturing capabilities.

Wanxiang Group agreed to invest up to $465 million to acquire as much as 80% of A123 Systems in August 2012.

The acquisition was not completed before A123 filed for bankruptcy, but Wanxiang America ultimately purchased the preponderance of A123's assets out of bankruptcy for $256.6 million in January 2013.

Lithium Werks took over A123's Chinese factory in Changzhou, along with the workforce and client base, in March 2018.

The sale marked a significant shift in A123's focus towards the automobile market, as stated by the company after the sale.

Here's an interesting read: Wanxiang

Industry and Competition

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A123 Systems operates in a competitive industry, with companies like Twenty First Century Battery manufacturing plastic lithium-ion rechargeable batteries.

FEVT offers large capacity solutions for storing electrical energy, but it's not the only player in the game.

Lion Cells develops battery technologies, which is an area where A123 Systems also excels with its Lithium-ion batteries and CCS, the company's intelligent Cell Control System.

Graphene Energy develops nanotechnology-based ultracapacitors for energy storage, utilizing a unique form of carbon called graphene for electrode material.

A123 Systems focuses on applications in the medium- and heavy-duty vehicle, industrial and stationary equipment sectors, which is a specific niche in the industry.

On a similar theme: Arcadium Lithium

Latest News

A123 Systems has been making headlines in recent years.

The company received a $55 million investment from the US Department of Energy in 2009 to support the development of advanced lithium-ion batteries.

A123 Systems has been involved in several high-profile projects, including the development of batteries for electric vehicles.

The company's batteries are designed to provide high power density and long cycle life.

A123 Systems filed for bankruptcy in 2013 due to financial difficulties.

The company's assets were acquired by the Chinese firm Wanxiang Group in 2013.

About A123 Systems

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A123 Systems was a leading developer and manufacturer of lithium-ion batteries and battery systems.

The company was founded in 2001 by a team of researchers at the Massachusetts Institute of Technology (MIT).

A123 Systems was headquartered in Ann Arbor, Michigan, and had manufacturing facilities in China and the United States.

Their batteries were used in electric vehicles, hybrid vehicles, and renewable energy systems.

A123 Systems' batteries were designed to be compact, lightweight, and high-performance.

The company's technology was used in various applications, including electric vehicles, hybrid vehicles, and renewable energy systems.

A123 Systems' products were used by major automotive companies, including Fisker Automotive, Renault, and BMW.

Here's an interesting read: Innergex Renewable Energy

Frequently Asked Questions

What is the ticker symbol for A123 systems?

The ticker symbol for A123 Systems is AONE. This symbol is used to identify the company's stock on various financial platforms.

Micheal Pagac

Senior Writer

Michael Pagac is a seasoned writer with a passion for storytelling and a keen eye for detail. With a background in research and journalism, he brings a unique perspective to his writing, tackling a wide range of topics with ease. Pagac's writing has been featured in various publications, covering topics such as travel and entertainment.

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