|A123 Systems Rises After Tata Battery Agreement: Boston Mover|
A123 Systems Inc. (AONE) rose the most in seven weeks after the maker of batteries for electric cars and trucks said it will supply packs for Tata Motors Ltd. (TTMT)’s commercial vehicles.
The shares climbed 10 percent to $1.99 at 9:56 a.m. in New York, after gaining as much as 14 percent for the biggest intraday advance since Jan. 11. They rose 12 percent this year before today, after falling 83 percent in 2011.
Tata, India’s largest automaker, will use the lithium-ion battery packs on hybrid diesel-electric city transit buses in the second half of the year, Waltham, Massachusetts-based A123 said in a statement. Terms weren’t disclosed.
“The addition of Tata Motors to our growing portfolio of blue-chip customers reinforces our position as the leading provider of lithium-ion battery technology for the truck and bus segment,” Jason Forcier, vice president of A123’s automotive group, said in the statement.
A123 supplies batteries for automakers such as Fisker Automotive Inc., General Motors Co. (GM) and Daimler AG. Fisker, A123’s largest customer, said Feb. 6 that it stopped working on its Wilmington, Delaware, plant after the U.S. Energy Department blocked access to a federal loan, citing unmet milestones.
Fisker said Feb. 28 it hired Tom LaSorda, a past president of the predecessor of Chrysler Group LLC, as chief executive officer. Fisker also said it may look for private investors to revive the Delaware factory, where it planned to begin making its second model, the Nina sedan, by next year.