A123 Rises on GM Electric Car Contract
A123 climbed $1.41, or 44 percent, to $4.58 at 10:22 a.m. in Nasdaq Stock Market composite trading. The shares surged as much as 49 percent earlier, the most since September 2009.
A123 will supply lithium-ion cells and electronic parts to Detroit-based GM for specific vehicles that will be announced later, the automaker said today in a statement. Kevin Kelly, a GM spokesman, declined to provide financial terms of the contract or production figures in a phone interview.
The contract with GM is an extension of Waltham, Massachusetts-based A123’s existing agreements with the largest U.S. automaker, according to the statement. A123’s customers include Bayerische Motoren Werke AG, Daimler AG, Fisker Automotive Inc. and Shanghai Automotive Industry Corp., according to a regulatory filing.
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