A123 Systems, a manufacturer of lithium ion batteries and energy storage systems for electric grid, transportation and commercial applications and SAIC Motor, an automotive company, have signed a new agreement that expands their partnership to develop a lithium ion battery manufacturing plant in China.
Under the terms of the agreement, both the companies will be performing a feasibility study to create the business plan and to estimate the investment required for establishing the proposed manufacturing facility. The plant is anticipated to meet the growing demand for lithium ion battery technology in China in a more rapid and cost-effective manner.
The new agreement is the extension of the existing partnership between the two companies that was developed in 2009 to establish Advanced Traction Battery Systems (ATBS) joint venture.
A123 systems and SAIC Motor, along with ATBS’ support, evaluates the viability of a joint venture to construct a coating and cell assembly plant in China. The plant will manufacture 20Ah prismatic lithium ion cells, which is anticipated to deliver a cost benefit for A123 systems’ battery technology in the local market. In addition, the facility is expected to significantly enhance the local content of battery systems manufactured by SAIC Motor and A123 systems.
Jason Forcier, vice president of the Automotive Solutions Group at A123 Systems, stated that they have made considerable advancement in entering passenger and commercial vehicle sectors in China through the collaboration with SAIC Motor.