A123Systems launched a lithium-ion battery for a new line of Black & Decker power tools Wednesday that the battery startup says will last 10 times longer than traditional lithium-ions and provide five times as much power.

Lithium-ion batteries are commonly used in phones and laptops. A123 uses a nanotech material called doped nano-phosphate, and the Watertown, Massachusetts-based company says its battery will recharge 90 percent of its capacity in five minutes. The battery is also lightweight, weighing in at less than 1 kilogram for a battery that provides 1.5 kilowatts of power, according to A123.

“It’s a really exciting time for the company,” said CEO David Vieau. “We expect that our technology will have the same impact on high-power products as the introduction of first-generation lithium-ion technology had on the development and commercialization of consumer electronics in the 1990s.”

A123 wouldn’t disclose the amount of the agreement with Black & Decker, citing confidentiality agreements. But the company said its battery is in production and will go into the entire line of DeWALT line of 36-volt power tools. The line, which includes a hammer-drill, reciprocating saw, circular saw, impact wrench, rotary hammer, jigsaw, flashlight, and combo kits, will be available next year.

In the same announcement, A123 said it has raised more than $32 million in venture capital funding from Qualcomm, Sequoia Capital, Motorola, North Bridge Venture Partners, the Massachusetts Institute of Technology, YankeeTek, and OnPoint Technologies, as well as from A123 Chairman Desh Deshpande.

The company also said it is working on a U.S. Department of Energy hybrid-electric vehicle initiative, and received an $850,000 grant for the project about two years ago.

A123 has been operating in stealth mode for four years until Wednesday, when it launched its web site and made its first announcements.

Using Advanced Materials

The battery is the latest example of two trends on the industry’s horizon. Companies are turning to advanced materials to boost the life, power, and efficiency of lithium-ions. And higher-voltage lithium-ions are edging their way into the power tool market, said Brian Barnett, managing director of research firm TIAX.

The push for more power has been strong in the past few years. As electronic devices have added functions and become smaller and more portable, batteries have lagged in their ability to provide that additional power.

One potential solution involves new materials at either the anode, the part where the electrical current enters the battery, or at the cathode, which is where the current exits. Traditionally, the anode is based on carbon, and the cathode is based on lithium-cobaltide. A123’s new material lies at the cathode.

In February, Sony turned heads with its Nexelion hybrid lithium-ion battery, the first to use a tin-based anode technically called cobalt-tin-carbon amorphous material. Sony says the battery stores 30 percent more power than other lithium-ions and recharges 20 percent faster.

Aside from improved performance, Mr. Vieau said A123’s battery is safer than other lithium-ions because doped nano-phosphate has a high level of thermal stability. This makes sense, considering that phosphate is used to extinguish fires. Another battery manufacturer, Valence Technology, structurally binds phosphate to its lithium-ion battery to make it safer.

Improving Performance

Mr. Vieau said A123’s battery will allow manufacturers to improve the performance and design of existing high-power portable devices, and to transform power cord-dependent products into “a new class of portable devices.”

Previously, lithium-ion batteries didn’t have the “deep discharge” capability to provide a lot of power at once, a necessity for power tools.

Another factor is weight. While users want to be able to work away from the wall, they don’t want to have to lift substantially more weight in order to make their tools portable, said Sara Bradford, a research manager at Frost & Sullivan. “If you’re talking about a cordless drill, weight is a big factor,” she said.

Why the interest in power tools? They represent a huge potential market for lithium-ion batteries, falling in third place behind cell phones and laptops, said Greg Love, CEO of battery integrator Micro Power. As it is, industrial lithium-ion batteries made up a $697.6-million market last year, said Ms. Bradford.

The Black & Decker tools will not be the first to use lithium-ions instead of nickel-cadmium or nickel-metal-hydride batteries.Tokyo’s Max launched a lithium-ion-powered hammer drill in January.

Milwaukee Electric Tool introduced portable tools using E-One Moli Energy batteries the same month, and The Home Depot is expected to launch the tools, along with lithium-ion-based tools from Makita, in November.

‘A Very Big Step’

Still, Ms. Bradford said the A123 announcement marks a “very big step” in battery development. The company is using nanotech to make the battery materials smaller, to provide more surface area for energy storage, increase safety, and to reduce the battery’s overall weight, she said.

“Lithium-ions have been trying to enter that area for a while, with some success but not overwhelming success,” she said. “I think with these improvements, they are definitely making in-roads there. And their first client is Black & Decker, which is a big step.”

While the company didn’t disclose price, Ms. Bradford said she expects the new battery will come at a premium, but added that Black & Decker is apparently willing to pay. She said she is watching A123’s approach in the automotive market with interest.

Aside from power tools and vehicles, Mr. Vieau said A123 eventually plans to enter the medical, military, and transportation arenas. But for now, it is focusing on ramping up its manufacturing.