Ad
Ad
Ad
© mariusz-szachowski-dreamstime.com Business | March 26, 2014

NEC expands smart energy business with acquisition

NEC acquires grid energy storage and commercial systems business of A123 Systems from Wanxiang.
NEC Corporation has acquired the A123 Energy Solutions business unit of A123 Systems, LLC. This acquisition, for approximately USD USD 100 million, strengthens the energy storage capability of NEC's smart energy business, a core segment of its Mid-term Management Plan's commitment to social infrastructure. A123 Energy Solutions will be integrated into the NEC Group of companies and operated globally as a key element of its business. An agreement on the terms of the deal has been finalized and 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, LLC.

"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 from wind and solar, more effective grid stabilization services like frequency regulation and frequency response, or the desire for more efficient 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 for residential, commercial, or industrial sites."

"We are delighted by the combination of strengths of the two companies," said Bud Collins, President of A123 Energy Solutions. "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."
Ad
Ad
Load more news
December 05 2018 3:01 pm V11.10.4-2