Interesting week for the battery sector

A123 Systems will IPO this week on Thursday on the US based NASDAQ market using the symbol AONE. The IPO has been widely anticipated as A123 often receives much of the attention within the battery start up sector. A123 has high profile backers such as GE and Kleiner Perkins. Already public firms such as Ener1 (HEV) and Valence Technology (VLNC) have seen their share prices run up, perhaps in anticipation of the IPO (up 14% and 34% respectively in past two weeks).

This week’s IPO will help put the spotlight on a variety of battery start ups as well as the entire sector as a whole. While some start ups are geared up with government funding and supplier contracts, others are still looking for footing. US Department of Energy loans are to be announced in the upcoming weeks and grants were already announced this past August to help jump start the industry.  On September 22, Fisker Automotive, a start up automotive company developing plug in hybrids and client of Ener1, was awarded an early DOE loan of $529MM.  As noted in an earlier post, the industry appears poised for a dynamic and exciting period of growth.

Sources:

http://online.wsj.com/article/BT-CO-20090922-703279.html

http://earth2tech.com/2009/07/20/13-battery-startups-hitting-the-road-with-lithium-ion/

http://www.reuters.com/article/marketsNews/idUSN2236305920090922

DISCLOSURE: Author owns shares of Ener1

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2 comments

  1. brettalan · September 24, 2009

    Reports are coming in that this will price in around $13.50/share, whereas pricing earlier this week was expected around $9.50/share. Big difference! Anyone want to share their thoughts on this potential investment?

    Market opens within the hour…

  2. Pingback: Tesla Motors rumored to IPO soon « Clean Technology & Private Equity/ VC, Company and Fund Research

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