Nature:
A leading manufacturer of lithium-ion batteries for electric
vehicles is facing financial and production woes. Founded in
2001, A123 Systems of Waltham, Massachusetts, is a relative
newcomer amid such large, well-established battery makers as LG
Chem of Seoul, NEC of Tokyo, and Panasonic. In addition, the
market for electric vehicles has not grown as rapidly as was
expected, partly because of the expense of the batteries, which
can amount to half the cost of the vehicles. To make matters
worse, the company suffered a major setback earlier this year
when it had to recall and replace $55 million worth of
defective batteries. Listed in 2011 as one of the 50 most
innovative companies by
Technology Review magazine, A123 is investigating new
technologies and materials to cut the costs of
production.
