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Home > News > A123 Systems goes public with a splash

October 1st, 2009

A123 Systems goes public with a splash

Abstract:
A123 Systems goes public with a splash
By DIRK LAMMERS (AP) - 6 days ago

Investors snapped up shares of A123 Systems in their debut Thursday, showing willingness to overlook millions of dollars in losses and make a bet that next-generation battery technology will propel the cars and trucks of the future.

Watertown, Mass.-based A123 Systems makes lithium-ion batteries, the technology chosen to power General Motor's highly anticipated electric car, the Chevy Volt. A123 lost out on the contract for the Volt but was picked to build batteries for Chrysler's next generation of electric cars.

Founded by Massachusetts Institute of Technology scientists, A123 lost more than $40 million in the first half of this year and seemed to challenge the market's fear of risk. But with the government pressuring automakers to build more fuel-efficient automobiles, investors obviously feel there is money to be made as companies compete to be the suppliers of the next power source for sedans, crossovers and pickups.

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