Friday, July 20, 2012

(BN) A123 Surges on 2-Megawatt China Grid-Stabilization Order

A123 Systems Inc. (AONE), a U.S. maker of lithium-ion batteries for electric cars, surged the most in five weeks after winning a contract to supply a 2-megawatt system to China's Ray Power Systems Co. to help regulate grid frequency.

The batteries will store electricity until needed to help stabilize China's electric grid and allow for the integration of fluctuating renewable-energy resources such as wind and solar power plants, Ray Power Systems said today in a statement released by A123.

"This is an application A123 has been chasing for some time and it's good to see they're making progress," said Michael Lew, a senior analyst at Needham & Co. in New York who has a hold on the stock. He estimates that the 2-megawatt storage system is comparable to enough batteries to run about 800 to 1,000 hybrid-electric cars.


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