Leadership Summit Presentation - Jeff kessen

©2010 A123 Systems, Inc. Proprietary and confidential.©2010 A123 Systems, Inc. Proprietary and confidential.

X PRIZE Leadership SummitTechnology Panel

28 July 2010Jeff Kessen

©2010 A123 Systems, Inc. Proprietary and confidential.

A123 Systems, Inc.

A123 Systems is a leading U.S. developer and manufacturer of advanced high power, safe and long-life lithium-ion energy storage solutions for next-generation applications in the transportation, electric grid and consumer markets

• Corporate headquarters: Watertown, Massachusetts• 1600+ employees worldwide

• Mass producing millions of batteries per year• >1,000,000 square feet of manufacturing facilities

in China, Korea and United States• Investing ~$1B+ in capacity (2009 to 2012)• NASDAQ (AONE) since 9/2009

2

©2010 A123 Systems, Inc. Proprietary and confidential. 3

Enabling New Products through Advanced Energy Storage

Core Markets

Drivers

Improve performance Reduce emissions Reduce toxic battery chemicals

Fuel economy Reduced emissions Energy independence Lighter-weight components Fuel efficiency

Increase grid reliability Enable Wind and Solar Increase plant efficiency/utilization

Consumer & IndustrialElectric GridTransportation

Portable and Mobility

StationaryPassenger Hybrids, PHEVs and EVs

Smart Grid Stabilization Systems

NetworkEnergy Storage

Commercial Hybrids, PHEVs and

EVs

©2010 A123 Systems, Inc. Proprietary and confidential.

Program in FocusBAE Systems’ HybriDriveTM

• More than 40 million miles of revenue service• 1400+ systems currently logging well over 3 million miles / month• More than 2 years of operation, on-track for 6 yr design life*

* This application operates 16 hours per day, up to 7 days per week

©2010 A123 Systems, Inc. Proprietary and confidential.

Program in FocusNavistar eStarTM

• All-electric delivery truck• 100 mile range with 4,400 lb payload capacity• First deliveries made to FedEx in May, 2010

©2010 A123 Systems, Inc. Proprietary and confidential.

Program in Focus12MW Electric Grid Stabilization in Chile

©2010 A123 Systems, Inc. Proprietary and confidential.

When will consumers adopt electric vehicles?

2010

50%

100%

201620142012

Today’s market prices vary widely

Battery Cost

Median battery prices will decrease dramatically in

the next 5 years

©2010 A123 Systems, Inc. Proprietary and confidential.©2010 A123 Systems, Inc. Proprietary and confidential.

X PRIZE Leadership SummitTechnology Panel

28 July 2010Jeff Kessen