A123 Systems (AONE) Gets Multi Year Lithium Battery Supply Deal With Fisker

Now we know why EnerDel and Fisker broke off discussions about working together.  Fisker wanted to work with A123 Systems (AONE).  This morning the companies announced a multi year deal in which A123 will supply the lithium batteries for the Fisker Karma to be launched later this year.  The relationship won’t end there.  A123 will also invest as much as $23 million in Fisker and collaborate on the Fisker Nina, which is the all electric family sedan.

In order to meet the new demand, A123 plans to expand its Michigan plant in order to produce 320K batteries and 24K plug in hybrid systems. 

CEO of AONE David Vieau said, “The combination of proceeds from our recent IPO and funding support from the DOE has provided A123 Systems with the capital necessary to execute against our expansion program. Our strategy is to deploy capital as we see customer demand developing, and we are encouraged by recent developments and the momentum within our overall portfolio of customer relationships across our key target markets. Examples of such activity include today’s announcement of a newly established strategic relationship with Fisker Automotive, our recently signed joint venture with SAIC and expansion of our electric grid customer base just to name a few.”

AONE is trading up 11% in premarket trading and the momentum may be enough to confirm a breakout from a cup with handle base. 

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