Last week A123 Systems (AONE) shot up 45% after the announcement of the company’s battery deal with General Motors (GM). The deal is unequivocally good for AONE. However, few substantive details have been released beyond the following -
- After a lengthy process that had become agonizing for AONE’s stock price, GM’s testing of AONE’s battery chemistry at the former’s lab in Warren, Michigan finally came to a positive conclusion.
- The contract will involve a program that is intended to rise to ‘tens of thousands of battery packs annually’.
- No detail was given with regard to which of the planned GM vehicles AONE’s battery packs will be used in.
- They will not be used in any future version of the Volt.
- Micky Bly, the GM executive in charge of the company’s electric vehicle program, only stated that “GM is committed to offering a full line of electric vehicles – each of which calls for different battery specifications”.
- The battery packs will be ‘ready for a 2013 vehicle launch’.
- When GM will actually launch the related vehicle model was left undisclosed.
Disclosure: I have no positions in the stocks mentioned. Having recently taking profits in Tesla, I may re-establish a position in the stock in the period ahead.