GE invests in hybrid car, lithium ion battery companies

Our Corporate Bureau
06 March 2008

General Electric of the US has invested $4 million in electric car maker Th!nk Nordic ASA of Norway, besides its investment in A123Systems Inc., a Watertown, Massachusetts, based lithium ion battery developer from whom Th!nk will buy batteries, the vital parts of the vehicles.

GE will help both companies commercialise their technologies to make electric transportation practical and affordable. The Norwegian company plans to launch its cars in Norway soon, and then in other countries.

Think's five-seat concept car, the Th!nk Ox, and plug-in electric car Th!nk City were displayed at the 78th International Motor Show in Geneva on 5 March. The Th!nk City has a range of 100 miles and is meant for city driving, as its name suggests; the Th!nk Ox targets the sports utility vehicle segment, but is lighter and more aerodynamic than the usual SUVs.

A123Systems is already plugged into the R&D resources of GE Global Research in New York state for its battery development business. The batteries it will develop for Th!nk's vehicles are a part of this effort. GE has invested more than $20 million in A123Systems already.

Besides GE, A123Systems has a long list of well-known investors. They include consumer products giant Procter & Gamble, Alliance Capital Corp., a big asset management firm, telecom equipment maker Motorola, telecom technology group Qualcomm,  Massachusetts Institute of Technology, and several venture capital groups, including North Bridge Venture Partners, Sequoia Capital, CMEA Ventures, FA Technology Ventures and OnPoint Technologies.

The battery company is led by its president and CEO David Vieau, a former American Power Conversion executive and Desh Deshpande, an influential technology entrepreneur and visionary who is also chairman of Tejas Networks and Sycamore Networks.