A123 Systems to Supply Batteries for Hybrid Power Systems

A123 Systems (Nasdaq:AONE), a developer and manufacturer of advanced Nanophosphate lithium ion batteries and systems, today announced that it has been selected by Eaton Corporation, a diversified industrial manufacturer (NYSE:ETN), to supply battery systems for production of a hybrid power system to be installed on a Ford F550 based Plug-in Hybrid Electric Vehicle (PHEV).

The program is partially funded by a $45 million grant in American Recovery and Reinvestment Act funds from the Transportation Electrification Initiative administered by the U.S. Department of Energy. It is managed by the Electric Power Research Institute (EPRI) under the lead of the South Coast Air Quality Management District (SC-AQMD) and is aimed to develop a production ready plug-in hybrid power train system suitable for widespread utility use in light/medium duty service vehicles.

These light/medium duty service vehicles, called "trouble trucks," are used by utilities to inspect, repair and maintain their transmission and distribution lines. In addition to being driven thousands of miles per year, these trucks are often left idling in residential neighborhoods to power the truck's equipment, thereby exposing operators to diesel exhaust, wasting fuel and emitting pollution. In contrast, the Eaton-powered PHEV trouble truck is intended to offer zero-emissions operation depending on how far the vehicle travels as well as lower operating costs.

"As fleet managers begin to consider emissions costs in addition to the lifetime costs of trucks, including acquisition costs, fuel and maintenance, the business case has become even more compelling," said Jason Forcier, vice president, Automotive Solutions Group, A123 Systems. "A123 is serving a widening array of transportation applications and we are looking forward to further broadening our fleet portfolio and continuing to work with Eaton, a company committed to producing efficient, reliable and clean hybrid power systems."

A123 Systems has been developing the battery system for much of 2010 with Eaton. The battery pack is expected to give the PHEV trouble truck a 10 mile range in EV mode or five to six hours of engine-off operation at the work-site. Eaton's integrated charging system also charges the battery in less than 6 hours. The vehicle is expected to have a fuel savings of up to 63 percent, depending on drive cycle and the use of its HVAC system.

A123 Systems, Inc. (Nasdaq:AONE) develops and manufactures advanced lithium ion batteries and battery systems for the transportation, electric grid services and consumer markets. Headquartered in Massachusetts and founded in 2001, A123 Systems' proprietary nanoscale electrode technology is built on initial developments from the Massachusetts Institute of Technology. Among the companies selecting A123 batteries, battery systems and technology in the fields of transportation, grid energy storage and consumer products are AES Energy Storage, LLC, BAE Systems, The Black & Decker Corporation, BMW, Daimler, Delphi, Fisker Automotive, and Shanghai Automotive Industry Corporation.

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