General Motors said today that it is contracting with A123 Systems to make electric vehicle battery components and packs.
A spokeswoman for A123 Systems confirmed that the company expects to add employees at its Ann Arbor operation after signing the deal. The company, which has about 35 workers at its operation in a research park just east of South State Road, recently hired its 1,000th employee in Michigan.
GM's Chevrolet Volt is the automaker's only vehicle currently on the market that uses lithium-ion batteries. Now, the automaker plans to contract with A123 Systems for lithium-ion batteries, although it did not reveal which future vehicles would use the batteries.Courtesy photo
The spokeswoman said in an email that it was too early to know exactly how many jobs would be added. The Ann Arbor operation conducts advanced research and "government solutions."
GM said it had validated A123 Systems' nanophosphate lithium-ion battery technologies and would work with the supplier to develop "calibrations and software controls for the battery system in preparation for production."
GM said it was not prepared to reveal which electric vehicles the batteries would power. The company's only electrically powered car currently on the market is the Chevrolet Volt, which can travel about 40 miles on a single charge of electricity before a gasoline engine kicks in, allowing the car to continue driving seamlessly.
“GM is committed to offering a full line of electrified vehicles — each of which calls for different battery specifications,” said Micky Bly, GM’s executive director of global electrical systems, infotainment and electrification, in a statement. “We work with a variety of battery developers and A123’s advanced nanophosphate lithium ion technology offers ideal performance capabilities for a future electrified vehicle application.”
A123 Systems is headquartered in Massachusetts but most of its operations are based in Michigan, including a massive battery production facility in Livonia.
The GM deal is a big win for A123 Systems, which was facing skepticism from analysts who said the company wasn't securing enough contracts.
It also comes two years after GM passed up A123 to pick Korean supplier LG Chem's Troy-based Compact Power unit to supply battery components for the Volt.
In 2009, A123 won a $249.1 million economic stimulus grant from the U.S. government to advance its technology and expand manufacturing.
A123 Systems' core technology has roots in Ann Arbor. A startup called T/J Technologies, founded in the 1990s by entrepreneur Maria Thompson and her husband, University of Michigan engineering professor Levi Thompson, was sold to A123 in 2006. A123 turned T/J's local operation into its Ann Arbor presence.
Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.
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