Bloomberg News

A123 Climbs on Deal to Supply Power-Storage Systems in U.K.

February 13, 2012

(Updates with closing share price in second paragraph.)

Feb. 10 (Bloomberg) -- A123 Systems Inc., a Waltham, Massachusetts-based maker of batteries for electric cars and utilities, rose after announcing a contract to supply power- storage systems to a U.K. grid operator.

A123 gained 7.7 percent to $2.03 at the close in New York after saying it would provide six of its grid battery systems to Northern Powergrid, a unit of Des Moines, Iowa-based MidAmerican Energy Holdings Co. that supplies power to more than 3.8 million customers in the U.K.

The storage systems will manage fluctuations on the grid and will be in operation by the end of this year, according to a statement today.

A123 yesterday fell 24 percent to $1.88, the biggest decline since September 2009, after its largest customer, Fisker Automotive Inc., stopped work on a factory and an analyst downgraded its shares.

Fisker said Feb. 6 that it fired 26 employees and stopped work at the factory it’s developing in Wilmington, Delaware, to make plug-in electric vehicles after the U.S. Energy Department blocked access to a federal loan.

--Editors: Will Wade, Randall Hackley

To contact the reporter on this story: Justin Doom in New York at jdoom1@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net


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