A123 systems, a Watertown, Massachusetts based battery startup, raised $69 million, with GE leading the investment with $15 million says the Wall Street Journal.
A123 will use the money to build new factories in Michigan to manufacture lithium ion batteries, packs and modules. Its president and chief executive, Dave Vieau told the Journal that the new round will help get the company closer to profitability, as it increases its production.
A123 recently inked a deal with Chrysler to sell it batteries for its new electric cars which are planned for the next few years. Of course, that assumes Chrysler can operate like normal, and it’s difficult to gauge what will happen if Chrysler goes bankrupt.
GE owns 10% of A123, as its total investment in the company is $70 million. GE also has a seat on the board of A123 as a result of the new investment. Since 2001, when the company was founded, A123 has raised $300 million.
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