Battery Maker A123 Systems to Double Manufacturing Capacity


A123 Systems LLC, a developer and manufacturer of lithium-ion batteries and systems, has announced its plan to double global manufacturing capacity to 1.5 GWh within the next three years.

The company operates manufacturing hubs in the state of Michigan; Hangzhou, China; and Changzhou, China; and A123 says all three are now operating at capacity due to considerable growth in demand.

Although the company is currently in the midst of a $100 million capital expansion across its manufacturing network, A123 says it has recognized that the existing investment plan must be substantially expanded to satisfy much stronger market demand for its products. In fact, the company currently forecasts growth of more than 50% this year.

The new investment program of an additional $200+ million will be installed in phases over the next three years, with additional investments anticipated as target markets further develop.

A123 says the additional capacity is planned to support a variety of applications and new customer programs across the globe, including low-voltage hybrids, plug-in passenger vehicles and several commercial vehicle programs.

“The strength of A123 has never been greater, and we are honored to be expanding our existing customer relationships and establishing new ones at the same time,” comments Jason Forcier, the company's CEO.

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