Li-ion battery maker Boston-Power announces $125M in new financing; focus on and support from China
20 September 2011
Boston-Power, Inc., a provider of lithium-ion battery cells, modules and systems (earlier post), announced $125 million in new funding from a combination of private equity investment and support from China. The growth capital and Chinese government incentives will be used predominantly to scale manufacturing, research and development, and business development activities in China for the company’s energy storage technology and products.
The private equity round was led by GSR Ventures, a venture capital firm with more than $1 billion under management that invests primarily in early stage and growth stage technology companies with substantial operations in China. GSR Ventures has offices in Beijing and Silicon Valley.
Additionally, through its stimulus programs and local industrial policies, the Chinese government is providing a range of grants, low-interest loans and related financial and tax incentives. Existing Boston-Power investors Oak Investment Partners and Foundation Asset Management (FAM) also participated in the round.
As part of its plans, Boston-Power is establishing an R&D and EV battery engineering facility in China. This organization will build upon the current generation of Boston-Power’s lithium-ion battery technology to develop new energy storage products and solutions.
The company also will build an advanced manufacturing facility in China that will be capable of producing 400 megawatt hours (MWh) of lithium-ion battery cells annually by the end of 2012.
Reorganizing. The company says that this substantial infusion of capital and incentives will help drive Boston-Power’s solutions more deeply into China. Due to the strategy to focus predominantly on China in both the immediate and longer term, the company is reallocating its global resources. This includes transitioning a number of positions and responsibilities from its Westborough, Massachusetts offices.
Details are still being finalized; however, the team in Westborough will maintain responsibility for intellectual property development, research and development, global customer support, sales and business development and partnerships with advanced research organizations in the Boston area.
As part of its investment in Boston-Power, GSR Ventures Managing Director Sonny Wu will serve as chairman of the board of directors. Wu co-founded GSR Ventures in 2004, following a series of senior-level positions with Nortel Networks, Shanghai ASMC, Shanghai Nortel Semiconductors Corporation and Guangdong Nortel Telecom Corporation. He was raised in China and completed his education in engineering physics at the University of British Columbia, the University of California at Berkeley and the Massachusetts Institute of Technology, as a Sloan Fellow.
Along with Founder and International Chairman Dr. Christina Lampe-Önnerud, Boston-Power’s board includes Bandel Carano, managing partner, and Allan C.Y. Kwan, venture partner, Oak Investment Partners; Richard Nilsson, senior analyst, Foundation Asset Management; and Robert C. Purcell, Jr., CEO, Protean Electric and a 32-year auto industry veteran responsible for the development and production of the GM EV-1.
Last week at the Frankfurt show, Boston-Power, Protean Electric and BRABUS unveiled a battery electric and a hybrid version of two vehicles based on the Mercedes-Benz E-Class. (Earlier post.)
Boston-Power’s battery technology platform is based on a flat, oval-shaped prismatic cell design with external dimensions equivalent to two conventional 18650 lithium-ion cells. Boston-Power currently uses cobalt and manganese on the cathode with graphite on the anode. Each cell incorporates multiple, independent safety devices located in different areas of the cell. The design of each safety component is optimized independent of the other components, and the distributed location eliminates unwanted interactions between them.
Another success in the Chinese war to de-industrialize the USA.
Posted by: Engineer-Poet | 20 September 2011 at 06:31 AM
In the 1980's GM dismantled US industry while making record profits, just as Moore noted.
Wealth IS a nationality. By vast majority, it's only the poor that die defending countries.
Posted by: kelly | 20 September 2011 at 07:06 AM
This is 100% our own doing, NOT China's nor India's, nor EU's etc.
We should all know how we became none competitive and why the country's economy is progressively being scuttled from within in the name of higher profits. The last real estate-banking-Wall-Street locally made bubble is a perfect example how we can shot ourselves in the foot. Millions have lost their lifetime accumulated wealth to unregulated speculators.
It is time to wake up and stop blaming others for the mess we so willingly created.
Of course, money will continue to move where potential profits are better and may not come back for a long time.
Corrective actions will have to be taken before it is too late and too much of the national wealth has moved out. Most of us will not like it because it will hurt.
Posted by: HarveyD | 20 September 2011 at 08:49 AM
Congrats to Boston Power. We need a lot of options on li-ion technology and perhaps this model - highly leveraging Chinese manufacturing with US R&D might be the right combination of low cost and good technology for the long term energy security of the US.
Posted by: Neil Maguire | 20 September 2011 at 04:00 PM
NM...Yes, that very same approach was very beneficial to Apple. Could it be repeated with Boston Power and others? If so, shall we buy their shares?
Posted by: HarveyD | 21 September 2011 at 01:56 PM
While they are at it, they should invest and build mass production facilities in China, India, Russia and Brazil where over 50% of future electrified vehicles may become a reality.
Posted by: HarveyD | 09 October 2011 at 12:06 PM