ANN ARBOR – Navitas Systems LLC has purchased A123 Systems’government business, including all U.S. military contracts, for $2.3 million from the United States Bankruptcy Court for the District of Delaware. The closing on this transaction is expected in early 2013.

A123 is a developer and manufacturer of advanced nanophosphate lithium iron phosphate batteries and systems for the transportation, electric grid, commercial and government markets, technology developed in part at the University of Michigan.

?In our due diligence of A123?s government business leading up to last week?s auction, we received detailed briefings on the impressive depth and breadth of A123?s proprietary nanophosphate lithium ion battery chemistry and other advanced technologies being developed for critical government and military applications,? said Navitas chairman and founder Alan El-Shafei. ?Based on this group?s robust and vital technology roadmap, we?re absolutely committed to invest in the people and infrastructure needed to continue delivering outstanding U.S.-designed battery solutions to military and government customers.?

Navitas officials said the company intends to continue to invest in the Ann Arbor research and development center to enhance its focus on advanced chemistry batteries and low-volume cell manufacturing.

?The suite of advanced battery technologies coming soon to military and government agencies is being developed by an even more impressive group of world-class scientists and engineers,? said Navitas CEO and owner Nancie El-Shafei. ?We?re determined to maintain and grow this organization as a strategic asset in maintaining U.S. competitiveness.?

Navitas officials said they view the dual locations of both Ann Arbor and Woodridge, Ill. to be a unique advantage in developing specialized applications for the government and military given the need to keep pushing the boundaries in terms of energy stored per unit weight and size.

?We purposefully sited our headquarters just outside the expansive campus of the Department of Energy?s Argonne National Laboratories,? said Navitas vice president of strategic initiatives Thomas Golab. ?Over the years, our team has developed a good working relationship with Argonne?s advanced battery personnel, and we see this as an additive opportunity for both organizations. With the recent announcement by the DOE to locate the Energy Hub at Argonne ? combined with the acquisition of A123?s advanced R&D facilities in Ann Arbor ? we find ourselves literally and ideally positioned to maintain, attract, and interact with the scientific talent needed to compete on a world stage.?

James Greenberger, executive director of the National Alliance of Advanced Technologies Batteries, called the sale ?good news for the U.S. advanced battery industry. I have known Alan ElShafei and his team at Navitas ? for many years. Alan has been a quiet success in the industry during a time when others were dominating the news. I?m sure that we will be hearing a lot more about Navitas Systems in the future, and all of us at NAATBatt wish them great success.?

Navitas Systems, founded in 2010, is a woman-owned small business based in a 100,000 -square-foot plant with local and offshore partners and solid financial stability.

The commercial part of A123 was sold at banrkutpcy auction for $256.6 million to the Chinese auto parts maker Wanxiang Group, besting a lower bid from Milwaukee-based Johnson Controls Inc. Wanxiang and A123 told The Washington Post that Wanxiang would be keeping A123′s American operations running and would not move those jobs overseas.

A123 has about 1,000 employees in the United States, including plants in Livonia and Romulus.