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A123 buys key technology and staff from Leyden Energy

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A123 Systems has acquired lithium-ion cathode and electrolyte technology from Leyden Energy for an undisclosed sum.

The deal includes more than 20 patents covering Leyden's lithium titanate (LTO) and non-flammable electrolyte (Li-imide). In addition, some of Leyden's staff will be relocated from Massachussetts to A123’s R&D department in California.

Hope for A123 Systems

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Fraught battery manufacturer A123 Systems has been handed salvation in the form of a US $465 million investment from Chinese car-parts maker Wanxiang Group Corporation.

This will result in Wanxiang, one of China’s biggest non-governmental companies, owning 80% of A123 and holding four of the nine board seats for A123.

Earlier this year A123 announced it was running out of money, despite a cash injection from the Obama administration in 2009. This new investment could mean a government funded business will be in the hands of a non-US company that could out-source jobs.

The Michigan based battery maker has suffered because the EV market has failed to take off as quickly as hoped, only accounting for 3% of US car sales last year. For the second quarter of 2012 it reported losses of US$ 82.9 million so is in desperate need of help. A123 has 2 500 workers whose job security rests on the secure future of the company.

A123 sign two deals in as many days

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This July A123 announced they shall be supplying BAE Systems with lithium-ion battery packs for its new HybriDrive Series to be used on municipal buses. The following day A123 signed a deal with Chinese Ray Power Systems to supply a grid energy storage system. This is great news for shareholders of A123. Share price has risen for the first time since the company announced in June that it is struggling financially.