Michigan Utility Company Invests in Battery Maker

DETROIT — An affiliate of Detroit Edison, DTE Energy Ventures, has made an equity investment in A123Systems, the Massachusetts maker of advanced battery systems for Chrysler and other auto firms.

DTE Energy is the parent of Detroit Edison and MichCon, which supply electricity and natural gas, respectively, to more than a million Michigan customers.

A123 is developing advanced lithium-ion batteries for use in electric vehicles and other applications. It plans to open a battery manufacturing plant in Livonia, Michigan, and has established an engineering group in nearby Novi, a Detroit suburb.

DTE Energy Ventures' investment in A123 was part of a $69 million financing round that was completed in early May.

"We believe A123Systems has the potential to become a leading player in its industry, and we are also pleased with its decision to invest in Michigan," DTE Energy Chairman Anthony Earley said. "Investment by leading edge, high-tech companies like A123Systems can help transform both the auto industry and Michigan's economy."

Inside Line says: Michigan energy customers should be thrilled to know that some of their monthly utility-bill payments are going to support Chrysler's EV battery supplier. — Paul Lienert, Correspondent