Livonia, Mich Manufacturing Facility

Livonia, Mich Manufacturing Facility

A123 Systems announced plans of expanding its global manufacturing capacity to 1.5 GWh within the next 3 years.

That means double the current output of three manufacturing hubs in the state of Michigan, Hangzhou, China and Changzhou, China, which are running at full utilization right now.

Good to hear that A123 Systems, after years of struggles, finally finds a lot of demand for its lithium-ion batteries.

The company intends to spend more than $200 million on new manufacturing capacity.

"While the company is currently in the midst of a $100 Million capital expansion across its manufacturing network, A123 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. 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. These programs collectively draw upon A123’s expanding product portfolio which offers multiple lithium-ion chemistries and cell designs optimized for different applications."

Jason Forcier, CEO said:

“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.”

Demand for more batteries comes from different applications:

"While A123 currently sees broad demand across its target markets, key new business wins have also validated the company’s strategy. In the field of low voltage hybrids, not only is the 12V starter battery product line continuing to expand but A123 has also received multiple production awards for 48V micro-hybrid applications. In China, the company is quickly capitalizing on the remarkable growth of plug-in vehicles in both the passenger vehicle and bus segments. These successes are driving additional R&D in high energy and power cell designs which will enter the market in the coming years."