A123Systems receives financing, expands Michigan operations

A123Systems’ latest announcement to build new lithium ion battery factories may seem on the surface like a win for Novi, where one of the plants will be built.The Massachusetts-based firm also has a research facility in Ann Arbor. The facility has grown significantly in recent years (the company went from 300 to more than 1,000 employees in one year) and expects to mushroom more soon as the company looks to expand in Michigan.The money for this expansion is coming from a $69 million investment from GE. That money will primarily go toward growing the lithium ion battery and smart grid technologies. This is GE’s seventh investment in the company, upping its ownership stake to more than 10 percent.A123Systems hopes to use this money to help leverage more investment from federal and state government sources. Billions in federal tax dollars have already been set aside for the development of lithium ion batteries. That has let A123Systems aim to help put 5 million hybrid or plug-in electric vehicles on the road by 2013.Source: A123SystemsWriter: Jon Zemke