Lithium-ion battery firm gets $55 million from VCs

SAN FRANCISCO—A lithium-ion battery provider with a deal in place to supply batteries for Hewlett-Packard notebooks has secured $55 million in series D venture funding led by Foundation Asset Management (FAM), the company said Wednesday (Jan. 14).

Boston-Power Inc. (Westborough, Mass.) said it would use the new growth capital to scale manufacturing, sales, marketing and research and development to meet global demand for Sonata lithium-ion batteries. Sonata is slated to come to the market in early 2009 through a relationship with HP, the world's No. 1 PC vendor.

Boston-Power's products could eventually be used to power a wide spectrum of end-applications—from consumer electronics devices to e-bikes, hybrid and electric vehicles and other forms of transportation, according to the company.

In addition to FAM, the series D funding round included existing investors Oak Investment Partners, Venrock, GGV Capital and Gabriel Venture Partners, Boston-Power said. Venrock Partner Tony Evnin has assumed chairmanship of the company's board, it said.

Boston-Power said it has attracted $125 million in investment since being founded in 2005.