Ofer Holdings Group has made a strategic investment in US lithium battery maker A123 Systems Inc., which will develop lithium-iron-phosphate batteries for Better Place's electric car venture.
Israel Corporation chairman Idan Ofer made the announcement during a press conference to mark the launch of Better Place in Australia. He added that A123 Systems had obtained access to the raw materials for the battery production through one of its subsidiaries. Ofer was apparently referring to lithium.
Ofer also said that the joint venture between Israel Corp. (TASE: ILCO) and China's Chery Automobile Co. Ltd. would probably focus on the development and production of electric cars. The joint venture will apparently become a major supplier of cars for Better Place, alongside Renault SA (Euronext: RNO) and Nissan Motor Co. Ltd. (TSE:7201).
Ofer said that Israel Corp. would continue to invest in environmental projects and that he considered Better Place's entry into Australia as a springboard to Asian markets.
A123 Systems is a fairly new company, which is not yet profitable and has several times deferred a planned IPO. The company is nevertheless considered a candidate for supplying batteries for the Chevrolet Volt electric car made by General Motors Company (NYSE: GM). A123 has advanced proprietary nanomaterials technology.
Published by Globes [online], Israel business news - www.globes-online.com - on October 23, 2008
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