A123 Systems, a developer and manufacturer of advanced Nanophosphate lithium ion phosphate batteries and systems, signed an agreement to supply lithium ion battery packs based on the company's prismatic cells to BAE Systems for its HybriDrive Series propulsion system.

The new design is initially expected to be deployed on city transit buses, and, as part of the new agreement, A123 will also supply lithium ion battery packs for additional versions of BAE's HybriDrive system for other commercial applications.

A123's battery packs are currently deployed in BAE HybriDrive systems on nearly 3,000 buses globally that have amassed more than 300 million service miles to date. The current HybriDrive system utilizes battery packs based on A123's cylindrical cells, but under the new agreement, A123 will deliver packs featuring the company's prismatic cells to satisfy BAE's requirements for a more compact and economical solution. The agreement also formalizes the terms of a previously announced customer warranty campaign through which A123 and BAE Systems are sharing in a program to retrofit and upgrade battery packs on hybrid busses in the field.

A123 Systems Inc. is a leading developer and manufacturer of advanced lithium ion batteries and energy storage systems for transportation, electric grid and commercial applications. The company's proprietary Nanophosphate lithium ion phosphate technology is built on novel nanoscale materials initially developed at the Massachusetts Institute of Technology and is designed to deliver high power and energy density and extended life.