The Homa Files

Ken’s Take: A123’s Systems’ IPO is a big deal for 2 reasons:

(1) A successful IPO has to be a good sign for the market

(2) Virtually all batteries for hybrid and electric cars are made outside the U.S. — mostly in Japan and Korea.  So, a shift to hybrids would still make the U.S. dependent on foreign sources for the cars’ power supply.  Domestic sources of batteries is critical for energy independence.

But note: lithium — the primary component of most rechargeable batteries — is almost entirely mined outside the U.S.   For more details, see the February 26, 2009 HomaFiles post “Batteries are the key weapon in the battle for energy independence … too bad we’re losing the weapons race.” 
https://kenhoma.wordpress.com/2009/02/26/batteries-are-the-key-weapon-in-the-battle-for-energy-independence-too-bad-were-losing-the-weapons-race/

* * * * *

MarketWatch, A123 Systems jolts IPO market,  Sept. 24, 2009

Lithium ion battery maker draws strong interest

A123 Systems’ newly minted shares jumped 50% in their stock market debut as Wall Street placed its bets behind the government-subsidized maker of lithium-ion batteries for the growing electric car market. On Aug. 6, A123 won $249 million in federal stimulus funds, which the company plans to use to build factories for making batteries.

A123 drew interest from IPO investors as a way to tap into new technology. The company raised $378 million in its debut on the Nasdaq.

* * * * *

A123 Systems, an eight-year-old battery builder launched by engineers from the Massachusetts Institute of Technology, has yet to turn a profit. The company reported a loss of $40.7 million on revenue of $42.9 million in the six months ended June 30.

The company carries marquee investors in its list of principal shareholders, including General Electric , Qualcomm Inc. , Motorola Inc. and North Bridge Venture Partners.

Not only a provider for electric cars, A123 Systems develops and manufactures advanced lithium-ion batteries and battery systems for the electric grid services and consumer markets as well.

* * * * *

A123 said in its IPO filing that the number of hybrid electric, plug-in hybrid and electric cars is expected to grow from 19 models in 2009 at an annual production rate of at least 20,000 vehicles to more than 150 models in 2014 and more than 200 models in 2019.

A.T. Kearney projects the market will grow to about $21.8 billion by 2015 and $74.1 billion by 2020, stoked by governmental regulation, emerging powertrain technology and rising consumer demand.

* * * * *

Full article:
http://www.marketwatch.com/story/story/print?guid=FEC91852-2BEC-4821-A6C2-F3BD67C61B7A

* * * * *

This entry was posted on September 28, 2009 at 7:59 am and is filed under Autos - Travel, Batteries - Lithium Ion. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.