A123 Systems IPO

Posted on August 11, 2008
Filed Under Clean Tech |

I long ago stopped watching IPOs but A123 Systems is going to be one to watch. The company makes advanced lithium ion batteries that are primarily targeted to the transportation market and as you can imagine this has been a hot growth market. A123 alone went from less than $1m in revenue in 2005 to $41m in revenue for 2007 and with about 150 employees. Not profitable but that is not surprising considering the significant R&D and manufacturing costs, both of which should decrease with technology maturity and volume.

Irrespective of what happens with oil, and for the record I predicted back in early July that we would see oil fall to between $80-90 (trading today at $114), the consumer consciousness has set in and hybrid and plug-in electric vehicle sales will outpace traditional vehicle sales. Add to the mix expansion in industrial vehicle sales and commercial vehicles and A123 will remain in a good place.

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