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Auto battery maker A123 Systems receives jolt from eager investors

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By DIRK LAMMERS The Associated Press

The Tampa Tribune

Published: September 25, 2009

Investors snapped up shares of A123 Systems in their debut Thursday, showing willingness to overlook millions of dollars in losses and make a bet that next-generation battery technology will propel the cars and trucks of the future.

Watertown, Mass.-based A123 Systems makes lithium-ion batteries, the technology chosen to power General Motor's electric car, the Chevy Volt. A123 lost out on the contract for the Volt but was picked for Chrysler's electric cars.

Founded by Massachusetts Institute of Technology scientists, A123 lost more than $40 million in the first half of this year and seemed to challenge the market's fear of risk.

A123 Systems Inc. was among the most lucrative first-day IPO's this year on a percentage basis, trailing only software company Opentable Inc. A123's shares gained $6.79, or 50.3 percent, to close at $20.29.

The Associated Press

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