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A123 may be new to the automotive battery scene, but not to Li Ion batteries. They currently mass produce batteries (slightly different chemistry, see the website for more information) for hand held power tools - so they have experience mass producing Li Ion batteries cells. In fact, if you look at the company news, they awarded a contract to build an automotive battery production facility.

In my opinion, A123's battery technology is superior, I predict they will win the competion.
 
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