Batteries: A123 Systems

Plug In Hybrids (PHEV) are a modified version of the hybrids currently on the road. Fundamentally, PHEVs increase the electrical range of a hybrid vehicle by incorporating a larger on-board battery and plug that allows for charging the battery off the electrical grid.

While there a number of benefits associated with PHEVs (see CalCars website for a comprehensive overview), the biggest delimiter appears to be battery capability. The common refrain from auto makers seems to be that they would love the build the vehicles, but existing battery technology is not safe enough, does not have storage capability, and/or is too expensive.

A123 Systems of Waterford, MA is working to overcome these challenges. Their story is reminiscent of Akamai: MIT scientists start company at a key moment of industry growth. By using iron phosphate instead of cobalt oxide, and employing nano-technology in the assembly process, A123 has been able to extract more power from batteries in a safer environment. Good overview article in the New York Times.

A123 has raised more than $100 million in venture funds from several investors, and is currently in neogiation with GM (and others) to provide batteries for next generation hybrids and PHEVs. Product lines also extend to battery intensive applications unrelated to autos, such as power tools and remote control. Not surprisingly, the DoD is also interested in their technology.

There are others in the battery technology category, but A123 has generated the most buzz by far. Much more to come.