Yet-Ming Chiang, a researcher and founder of A123 Systems, has developed a new battery design that he claims could make electric vehicles much cheaper. Chiang has started a new company to commercialize the battery technology called 24M. The researcher says that the new battery he has designed could cut costs of the battery packs for electric vehicles, such as the Chevrolet Volt, by as much as 85%.
That cut in price on the battery pack, which can cost as much as $10,000, has the potential to significantly affect the price of electric vehicles and make them more cost competitive with traditional gasoline vehicles. A24 has raised $10 million in venture capital and an additional $6 million from Advanced Research Projects Agency-Energy or ARPA-E. The money will be used to fund collaboration between A24, MIT, and Rutgers University.