A123 Systems is a privately-held company that was founded with $100 million worth of funding and is based on MIT's efforts to develop better battery technology. Limitations of current battery technology are really the limits to electric vehicle development, period, as well as a good portion of the cost (Tesla's battery system cost for their own packs is rumored to be around $25,000 per vehicle for the upcoming $98,000 roadster). What A123 has done is taken a nano-scale material developed at MIT and given it the trademarked name "Nanophosphate" technology. They were named one of the two battery system development partners for GM's future plug in dubbed the Volt, and they are a more advanced competitor of Tesla's in-house lithium ion technology that has been recently licensed by Tesla to Think, a Norwegian manufacturer of small electric vehicles.
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