A123Systems raises $69 million

A123Systems, the Watertown company recently chosen to power Chrysler LLC's first generation electric vehicles, said it has raised $69 million from General Electric and other investors to "accelerate the expansion of its US lithium ion battery manufacturing and smart grid capabilities."

Various GE units provided $15 million of the amount raised in this financing round, said A123Systems, which noted that this was GE's seventh investment in A123, making it the company's largest cash investor and bringing GE's cumulative investment to $70 million, increasing GE's ownership stake to more than 10 percent.

Mark Little, GE's senior vice president and director of GE global research, will join A123's board of directors, the company said.

"In addition to the private capital, A123 is seeking funds under federal and state stimulus and other programs to ramp up its production capabilities in Michigan," the company said in a press release. "The company's planned production facilities would be capable of supplying battery systems for five million hybrid electric vehicles or a half-million plug-in electric vehicles per year by 2013."

To read a recent Globe story about A123Systems and Chrysler, please click here.
(By Chris Reidy, Globe staff)