A new era of US economical history has begun.
A123 Systems is the Watertown Massachusetts based lithium-ion battery company that was born out of a lab at MIT. The company has developed a unique lithium-ion nanophosphate cathode material that enables high energy and power density batteries, that are particularly useful for automotive applications.
A123 has been in operation for eight years and has developed working and developmental relationships with several major automakers to produce batteries for electric and hybrid vehicles. They are known to be working with GM, Chrysler, and BMW, and also have business with DeWalt and Black and Decker for cordless power tools.
The company has already received significant private investments from high profile firms which including General Electric, Qualcomm, and Motorola and has received a recent $250 million US government DOE grant to build a US-based lithium ion battery factory.
For more than a year the company has been working on an IPO. That time has finally arrived.
Shares were priced at $13.50 and has begun trading on the NASDAQ under the symbol AONE. 25.7 million shares were sold leading to $380 million in funds for the company.
Considering the possibility of achieving 1 million electric cars on US roads by 2015, many experts believe the potential revenue for the lithium ion battery industry to exceed $20 billion per year by then, and over $70 billion per year by 2020.