Navitas Systems plans to acquire 40 employees from A123 Systems in Southeast Michigan, after the company’s $2.3 million acquisition.
Navitas was the company that purchased the government side of A123 Systems’ operations by offering the highest bid during the December U.S. Bankruptcy Court auction. Chinese company Wanxiang won A123’s majority business, among which automotive lithium-ion battery technology. Tuesday, January 29th, the Obama administration approved both sales.
“It is truly an investment we see as opportunistic in terms of serving the government and military business and looking at some potential commercialization opportunities that come from it,” Navitas Chief Financial Officer Thomas Golab said in a recent interview.
Navitas’ purchase includes: the ability to source cells and components from A123, an undisclosed value of government contracts, patents held by A123 Systems’ government unit, 11 engineers from A123′s automotive business and an A123 Systems Ann Arbor facility plus its employees. Alan ElShafei, Navitas Chairman and Founder, said that the Ann Arbor group is working on developing a high-energy Li-ion battery cell, expected to offer twice the energy density of the current Li-ion battery technology.
“I believe if we offer this technology in this large power format, that’s the key differentiator in the market,” ElShafei said.
by Ana Cezara Savin
) - Wednesday, January 30th, 2013 - filed under News
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