Advanced battery maker A123 Systems Inc., bought out of bankruptcy in 2013 by a Chinese auto-parts maker, is investing $300 million to double its global battery-making capacity, adding to plants in Michigan and China to meet surging demand, the Wall Street Journal reported today. The turnaround reflects the company’s change in strategy to focus on 12-volt lithium-ion batteries for starting cars as well as larger 48-volt batteries that can inexpensively turn cars into hybrid, gasoline-electric cars. These batteries serve as substitutes for traditional lead-acid batteries found in the hundreds of millions of cars on the road today. Work is to begin on expanding the three plants this year. A123 has one factory in Michigan and two in China. Demand for the batteries is primarily in Europe and China, where the demands to improve fuel economy and reduce exhaust pollution are higher than in North America.
