NextNRG Partners with A123 Systems to Scale Domestic Battery Production
Novi, Monday, 29 December 2025.
NextNRG joins forces with A123 Systems to deploy U.S.-manufactured battery storage, aiming to bypass import tariffs and secure supply chains without requiring upfront capital for new manufacturing facilities.
Domestic Integration and Infrastructure Strategy
The agreement, announced on Monday, December 29, 2025, establishes a framework for NextNRG, Inc. (NASDAQ: NXXT) to integrate A123 Systems’ advanced lithium-ion battery technology into its U.S. energy projects [2][3]. Specifically, the collaboration focuses on deploying A123’s 20-foot, 5-megawatt-hour (MWh) battery energy storage systems (BESS) [2][6]. By sourcing these components domestically from A123, which is headquartered in Novi, Michigan, NextNRG aims to mitigate risks associated with import tariffs and strengthen the resilience of its supply chain [2][4]. This partnership is designed to support the company’s projects across the healthcare, commercial, and utility sectors [3].
Strategic Capital and Manufacturing Plans
A pivotal component of the Memorandum of Understanding (MOU) is the potential evaluation of a U.S.-based manufacturing facility. Notably, the agreement outlines that this future development would not require capital investment from NextNRG, allowing the company to scale its infrastructure capabilities while preserving its balance sheet [2][3]. This structure permits NextNRG to leverage A123’s proven technology and manufacturing capabilities without the immediate financial burden typically associated with industrial expansion [2].
Market Reaction and Financial Context
Despite the strategic emphasis on domestic growth, the immediate market reaction to the announcement was negative. Following the news on Monday, NextNRG shares declined by 10.44%, trading at $1.42 and reducing the company’s market capitalization to approximately $190 million [4]. This volatility contrasts with the company’s recent operational growth; NextNRG reported a significant surge in revenue for November 2025, reaching $7.51 million compared to $2.02 million during the same period the previous year [1]. This represents a year-over-year increase of 271.782 percent.
Leadership Perspective
Executive leadership from both entities emphasized the necessity of localizing production in the current economic climate. Michael D. Farkas, Executive Chairman and CEO of NextNRG, stated that the collaboration positions the company to deploy storage systems at scale while “navigating an increasingly complex trade environment” [6]. Similarly, Manuel Spitzlay, Senior Director of Sales at A123 Systems, noted that the MOU reflects a shared commitment to domestic manufacturing and creates a foundation for broader industry participation [2][6].