Battery maker A123 Systems has agreed to sell its grid storage business and other assets related to energy storage for telecom and IT data storage applications to NEC for approximately $100 million.

NEC will incorporate the former A123 Energy Solutions Business into its Smart Energy Business Unit. A123 facilities in Westborough, Massachusetts and Chesterfield, Missouri are included in the deal, but A123 will retain its global cell manufacturing locations, and will become a key cell supplier to NEC.

A123, which is now a subsidiary of China’s Wanxiang Group, presented the sale as part of its strategy to focus on transportation, especially micro-hybrids. “Our move to sharpen focus on the global transportation market demonstrates strategic clarity in our business. Our customers and partners will benefit from the organization focusing its R&D strength and system engineering capabilities on clear priorities,” said CEO Jason Forcier. “We look forward to continued growth as a provider of leading-edge energy storage technology to the world’s vehicle manufacturers as they continue to develop the most economical forms of electrification.”

A123 has integrated some of Wanxiang’s battery production and engineering facilities in Hangzhou, expanding its battery technology portfolio, and also intends to expand its marketing and distribution of cell products for commercial and industrial applications.

Source: A123, NEC