Analysis of A123Systems IPO

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reikiman
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Analysis of A123Systems IPO

It seems A123Systems is proceeding with IPO plans. The following is an analysis of the IPO written by someone whose background is in lead acid batteries. He had this interesting detail

During the first quarter of 2009, A123's cost of goods sold was $1.89 per watt hour, which does not compare favorably with an average cost of roughly $0.20 per watt hour for lead acid batteries. Likewise A123's $41 million investment in property, plant and equipment that can manufacture up to 151,000 kWh of batteries per year is at least an order of magnitude greater than the capital cost of lead-acid battery manufacturing facilities.

http://www.altenergystocks.com/archives/2009/06/a123s_planned_ipo_moves_to_the_front_burner.html

jdh2550_1
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Re: Analysis of A123Systems IPO

Interesting little snippet. Thanks. Assuming the data is correct then in comparison Thundersky retail price is currently around $2 per Ah per cell. Which is 2/3.2 = $0.625 per Watt Hr. That's their MSRP. I bet their cost is more like $0.30 per Watt Hr...

$1.89 vs. $0.30. Around 600% difference.

Youch!

(or did I get my math wrong again?)

John H. Founder of Current Motor Company - opinions on this site belong to me; not to my employer
Remember: " 'lectric for local. diesel for distance" - JTH, Amp Bros || "No Gas.

reikiman
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Re: Analysis of A123Systems IPO

why did you divide by 3.2? watts = amps * volts ?

antiscab
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Re: Analysis of A123Systems IPO

because you are after $/wh
so its ($/Ah)/(v) or put another way $/(Ah*V)

Matt

Daily Ride:
2007 Vectrix, modified with 42 x Thundersky 60Ah in July 2010. Done 194'000km

jdh2550_1
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Re: Analysis of A123Systems IPO

And if Matt says it's right then that's good enough for me! ;-)

Think of it this way: 1Ah * 3.2 nominal cell voltage = 3.2Wh for a retail price of $2. So, 1 Wh costs $2 / 3.2Wh = 0.625 $/Wh.

John H. Founder of Current Motor Company - opinions on this site belong to me; not to my employer
Remember: " 'lectric for local. diesel for distance" - JTH, Amp Bros || "No Gas.

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