DTE Energy Invests in Advanced Battery Maker A123Systems
DETROIT, May 13, 2009 -- DTE Energy Ventures recently made an equity investment in Massachusetts-based A123Systems, which is developing lithium ion batteries for automotive applications and announced plans to open a manufacturing plant in Livonia, Mich. The company also is developing batteries that can be used on the electrical system to provide grid stability and potentially to store power produced by renewable generation. DTE Energy Ventures' investment was part of a $69 million financing round completed earlier this month.
"We are excited about the potential of A123Systems to establish itself as a leader in the development of advanced battery technology," said Knut Simonsen, president, DTE Energy Ventures. "They have the technical expertise and the management talent to achieve and maintain a position at the forefront of this emerging industry."
DTE Energy Chairman and CEO Anthony F. Earley Jr. said he appreciates the commitment by A123Systems to the domestic auto industry and to Michigan. The company has established a strategic partnership with Chrysler LLC and has announced plans to open a production facility in Livonia.
"We believe A123Systems has the potential to become a leading player in its industry, and we are also pleased with its decision to invest in Michigan," Earley said. "Investment by leading edge, high-tech companies like A123Systems can help transform both the auto industry and Michigan's economy."
"Financing from DTE Energy and others has helped us to accelerate plans to expand A123Systems' manufacturing facilities in the U.S., that we expect will create needed jobs and help establish the U.S. as a global leader in advanced batteries," said David Vieau, A123Systems' President and Chief Executive Officer. "We applaud DTE Energy for its commitment to an emerging industry with the potential to change the way we consume energy in the future."
A123Systems first invested in Michigan when it acquired Ann Arbor-based T/J Technologies in 2006. The company later expanded operations by establishing an automotive engineering team that is currently located in a facility in Novi.