A123 Systems, a developer and manufacturer of advanced Nanophosphate lithium iron phosphate batteries and systems, has expanded its partnership with China’s largest car maker, SAIC Motor to help meet rising demand for electric vehicles in country.
As part of the latest agreement the pair will carry out a feasibility study and business plan to jointly develop a battery manufacturing facility in China.
The new manufacturing facility would be a coating and cell assembly plant to produce A123’s 20Ah prismatic cells, which is expected to create a cost advantage for A123’s technology in the Chinese market. It could help the firms qualify for a variety of incentives and financial support under China’s New Energy Initiative.
The companies expect to complete the negotiations by the end of September.