A123 Systems: A New Lithium-Ion Battery System
for Electric and Hybrid Cars
1. What are the problems?
• Consumer market dropped from 93% → 76% → 26%
• Market share dropped $13.50 → $23.46 → $5
• Many competitors- if competitors merge or acquisition, it’ll be very difficult
• Damage of new technology
• Dependent on transportation manufacturer and electric grid providers
• If they can’t meet demand, they won’t have any job
• Products are still in embryonic stage which means products are still in process
• Increasing cost and negative cash flow
• Large expensive inventories in hand
• Spending over $300 million on equipment and other capital expenses
• R&D cost keep increasing
