NEC Corporation has acquired A123 Energy Solutions, the grid energy storage and commercial business unit of A123 Systems, for approximately USDÂ $100 million.
This acquisition strengthens the energy storage capability of NEC’s smart energy business.  With NEC’s world-class ICT and A123 Energy Solutions’ system integrations expertise, NEC is expected to transform NEC the world’s leading supplier of lithium-ion grid energy storage systems.
Following the agreement, a new company “NEC Energy Solutions” is slated to begin operation in June 2014 under the direction of NEC.
A123’s existing cell manufacturing and sales, research and development, and automotive operations will remain the core focus of A123 Systems, the company said.
“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 stabilization services, or the desire for reinforcement of existing transmission and distribution grids,” said Takemitsu Kunio, senior vice president of NEC Corporation.
“Improving energy reliability, sustainability, and security, we will provide turn-key energy storage solutions, ranging from utility-side storage at the megawatt scale, down to behind-the-meter storage at the kilowatt scale,” Kunio added.
A123 Energy Solutions has supplied lithium-ion grid energy storage systems to some of the world’s leading utility companies and independent power producers, including applications in North America, South America, Europe, the UK, and Asia, including recent 2MW and 500kW installations in China.
Bud Collins, president of A123 Energy Solutions, said, “Combining our experience in the grid storage space with the world’s leading utilities and power producers, NEC’s strength in ICT, and its lithium-ion manufacturing scale, we believe the resulting company will be a formidable organization, well-equipped to handle the emerging smart energy sector across the globe.”