NEC Acquires Grid Energy Storage And Commercial Systems Business Of A123 Systems From Wanxiang

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NEC Corporation has announced the acquisition of the A123 Energy Solutions business unit of A123 Systems, LLC. This acquisition, for approximately $100 million, strengthens the energy storage capability of NEC’s smart energy business, a core segment of its Mid-term Management Plan’s commitment to social infrastructure. A123 Energy Solutions will be integrated into the NEC Group of companies and operated globally as a key element of its business. An agreement on the terms of the deal has been finalized and a new company “NEC Energy Solutions” is slated to begin operation in June under the direction of NEC. A123’s existing cell manufacturing and sales, research and development, and automotive operations will remain the core focus of A123 Systems, LLC.

With this acquisition, NEC will become the world’s leading supplier of lithium-ion grid energy storage systems. A123 Energy Solutions has deployed over 110MW of its Grid Storage Solutions (GSS™) worldwide with the vast majority of these systems already in revenue service. The company will continue to supply systems using A123 Systems’ Nanophosphate® lithium-ion cells and support all existing installations. NEC Energy Solutions, with access to NEC Corporation’s world-class information communications technology (ICT) and A123 Energy Solutions’ system integrations expertise, is now better prepared to address the increasing global need for energy storage. In addition, NEC’s high quality, cost-effective lithium-ion technology adds to the ever-growing portfolio of energy storage technologies available for future use in A123 Energy Solutions’ GSS platform. At the same time, NEC will leverage A123 Energy Solutions’ experience in commercial batteries in order to serve NEC’s telecommunication carrier, enterprise and government customer base, thereby helping to drive the global expansion of NEC’s smart energy business.