A123 Takes the Low (Voltage) Road to Doubling Battery Capacity

Livonia, Mich.-based A123 Systems LLC is investing $200 million to double its annual global lithium-ion manufacturing capacity to 1.5 GWh and increase battery cell production by 23% to 4.3 million units over the next three years.

The plan, which is in addition to an existing $100 million capital investment, will expand the company's facilities in Livonia and Romulus, Mich, and Hangzhou and Changzhou, China, all of which currently are running at their capacities.

The new investment will be used to purchase more efficient battery cell assembly equipment for low-voltage battery packs. In addition, new lines will be added in China.

After emerging from Chapter 11 bankruptcy in 2013 as part of China's Wanxiang Group Corp., A123 switched its focus from lithium-ion power packs for hybrid and electric vehicles to smaller, low-voltage units that power auxiliary systems. The batteries feature unique chemistries and cell designs for specific applications, such as 12-volt starters and 48-volt micro-hybrid systems.

With battery demand growing, post-bankruptcy A123 expects to be profitable for the first time this year with revenues climbing 50% to $300 million. The company aims to double its sales to $600 million in 2018.