US car battery-maker A123 said Tuesday that it had made a huge advance in lithium technology.
The US car battery company saw shares soar as it reported a more efficient and durable battery for hybrid vehicles.
The new “nanophosphate EXT” is a lighter cell that does not need to remain at the same temperature to function - an advancement that would eliminate the need for a cooling system, reported the New York Times.
"We believe Nanophosphate EXT is a game-changing breakthrough that overcomes one of the key limitations of lead acid, standard lithium ion and other advanced batteries," said CEO David Vieau, according to the Associated Press.
The Waltham, Mass. company said that it will be producing the batteries within the first half of 2013, said the Wall Street Journal.
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The company is one of many clean energy schemes supported by the 2009 stimulus package.
A123 received $249 million to make batteries in Michigan to bolster local manufacturing and transition the economy to green energy.
Efforts have had mixed success, reported Bloomberg, with a recent recall due to flaws in earlier batteries.
The recall forced the company to shed jobs and it is estimated will eventually cost it $50 million.
A123 has stated that it is searching for additional funding for its new battery as the company is currently running low on money, said the New York Times.
Despite losing about 80 percent of their value in the last year, shares in the company jumped 15 cents, or 14 percent, to $1.19 when trading opened Tuesday.