NEC buys A123 grid storage arm
NEC has acquired the grid energy-storage business unit of A123 Systems, forming NEC Energy Solutions after a $100m deal.
The new business will begin operation in June 2014 as part of the NEC Group.
A123 Energy Solutions has deployed over 110MW of its Grid Storage Solutions (GSS) worldwide, and NEC Energy Solutions will continue to supply systems using A123 Systems’ Nanophosphate lithium-ion cells and support all existing installations.
"With these combined strengths, NEC Energy Solutions will be able to help satisfy the growing demand for energy storage worldwide, whether driven by increased penetration of renewable energy, more effective grid stabilisation services, or the desire for reinforcement of existing transmission and distribution grids,” says Takemitsu Kunio, senior vice president of NEC Corporation.
NEC is to establish a joint venture company with automotive manufacturer Wanxiang and its affiliates to address the growing Chinese market. A123 Energy Solutions has recently supplied 2MW and 500kW installations in the country.