LIVONIA — A123 Systems LLC, the lithium-ion battery maker now owned by China’s Wanxiang Group, sadi Tuesday that it has completed the sale of its battery materials manufacturing business in Changzhou, China to Johnson Matthey, a specialty chemicals manufacturer based in London, England.
The plant in Changzhou produces lithium iron phosphate, the cathode material that A123 has historically used across its product portfolio.
The companies have entered into a long term supply agreement where Johnson Matthey will supply all of A123’s LFP requirements.
A123 is maintaining its considerable research and development capability related to battery materials and is presently developing further improvements to its LFP formulation as well as other modern battery materials. In this transaction, A123 has also retained ownership of its intellectual property in battery materials and Johnson Matthey will produce A123’s Nanophosphate formulation of LFP exclusively for A123.
“This deal is good for both companies as A123 seeks to rationalize its supply chain while Johnson Matthey can leverage its substantial experience in the manufacturing of specialized materials.” said Jason Forcier, CEO of A123 Systems. “We look forward to a long and prosperous relationship with the Johnson Matthey team.”
A123 develops and manufactures lithium-ion batteries and energy storage systems for transportation and other commercial and industrial applications. The company’s proprietary Nanophosphate lithium iron phosphate technology is built on novel nanoscale materials initially developed at the Massachusetts Institute of Technology and is designed to deliver high power and energy density, increased safety and extended life.
More at www.a123systems.com.