The announcement of new investments by General Electric in A123 Systems and Th!nk Global shows an interesting development in electric transportation. This international company is throwing its weight behind the electric-battery developer and auto maker to invest in the burgeoning green transportation movement. It remains to be seen whether General Electrics’ questionable history with air and water pollution will cast a shadow over these investments.
General Electric has become the largest single investor in A123 Systems with its agreement to finance batteries for Th!nk Global’s newest line of cars. GE has spent $20 million in distributions to A123 to perfect the company’s Li-ion battery packs and other batteries needed in electric cars. This level of investment is likely to rise as Th!nk Global is preparing to release its City car in Europe during the 2009 model year.
Th!nk Global is benefiting from General Electric’s financial largess in the form of a $4 million investment in nascent vehicle concepts. This connection between General Electric and Th!nk Global was released as part of the auto company’s presentation at the Geneva Auto Show last week. The use of A123 batteries in Th!nk Global cars along with GE’s desire to have a direct hand in the popularity of electric cars in Europe made the partnership seem inevitable.
The triangle of investments between Th!nk Global, General Electric and A123 Systems was finished with Th!nk Global’s commitment to a commercial supply agreement with A123. This investment ensures that the new City and future vehicles will have an optional A123 Li-ion battery pack for buyers familiar with the brand. The first battery to arise from this agreement is the 19kwh battery pack from A123 that will be available in the first generation of City cars.
The benefits of these investments and agreements outweigh the marketing and public relations problems associated with General Electrics’ past. A123 Systems is buoyed by plenty of other investors and the young company has proven successful at drawing interest from electric car manufacturers. Th!nk Global has shown the commercial promise through its Geneva Auto Show presentation as well as commitments from A123 Systems and General Electric in the company’s future. The virtues of GE’s two partners should help propel electric vehicles ahead over the next five years.
