A123 Systems to Supply Energy Storage System to Ray Power for Frequency Regulation in China

System Designed to Showcase Lithium Ion Battery Energy Storage as a Fast, Accurate and Clean Resource for Facilitating the Increased Integration of Renewable Energy Generation onto China’s Power Grid.

A123 Systems (Nasdaq:AONE), a developer and manufacturer of advanced Nanophosphate® lithium iron phosphate batteries and systems, today announced that it will supply a 2MW grid energy storage system to Ray Power Systems Co. Ltd., a Chinese company focused on developing the frequency regulation market and relevant technologies.

“The project in China will be designed to validate the technical capabilities and benefits of energy storage as a fast-ramping, accurate and clean resource for providing frequency regulation services,” said Eldon Mou, CEO of Ray Power. “Limited overall system ramping capability has created renewable integration issues as well as potential risk of grid instability because of the high penetration of renewable generation, particularly in northern China. A123 Systems has demonstrated the viability and reliability of its product through a number of successful global commercial deployments, and we expect this project to showcase energy storage as a valuable resource for meeting China’s growing frequency regulation demand.”

“We believe that China represents a large market opportunity for our energy storage technology, including as a solution to address the ramp-management challenges associated with the increased deployment of wind and other renewable energy generation assets,” said Robert Johnson, vice president of the Energy Solutions Group at A123. “Today’s announcement builds on our progress in China and is a significant step toward proving the capability of our technology for providing frequency regulation in China. Ray Power has a deep understanding of China’s power market and of energy storage technologies and has developed a set of comprehensive solutions for deploying energy storage to capitalize on this growing opportunity, so we look forward to success in this initial deployment and believe it could lead to additional projects going forward.”

A123 Systems, Inc. (Nasdaq:AONE) 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 iron 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, increased safety and extended life. A123 leverages breakthrough technology, high-quality manufacturing and expert systems integration capabilities to deliver innovative solutions that enable customers to bring next-generation products to market.