A123 Systems (AONE) is popping this morning on news it will expand its presence in the China market in a joint venture with SAIC Motor, a leading auto manufacturer in China. The two companies will co-develop complete lithium battery systems for hybrid and electric cars. The joint venture, called Shanghai Advanced Traction Battery Systems, will use the batteries in all SAIC manufactured cars and trucks and look to sell the battery to other manufacturers throughout China. SAIC will be the majority owner of the joint venture at 51%.
“We are excited to be partnering with an industry leader such as SAIC Motor to pursue the expanding Chinese market for advanced lithium ion battery technology,” said David Vieau, chief executive officer of A123 Systems. “As part of this partnership we look forward to building a team of outstanding employees to develop innovative battery technologies that we expect will be included in some of the highest quality hybrid and electric vehicles anywhere in the world.”