Large global power company AES (NYSE: AES) has made what's being called a $3 million "strategic investment" in Altairnano (Nasdaq: ALTI), a maker of high-performance battery pack systems used in electric and hybrid-electric automobiles and stationary power systems.

AES privately bought 895,523 treasury shares of Altair common stock at $3.35 per share, the NASDAQ closing price of Altair shares on the day prior to closing, representing approximately 1.5% of Altair’s outstanding common shares.

Cowen and Company acted as the financial advisor to Altair for the transaction.

AES is one of the world's largest global power companies, with 2005 revenues of $11 billion and operations in 26 countries on five continents.

“Advanced battery technologies have the potential to transform both the electricity and transportation sectors,” said Robert Hemphill, Executive Vice President of AES. “The batteries that Altairnano is beginning to ship, with their high power density and extended cycle life, offer great promise for powerful, fast charging electric vehicles and other applications.”

“Altairnano and AES have a common focus on the alternative energy market and we are proud to have them as a major investor,” said Altair President and Chief Executive Officer, Alan J. Gotcher, Ph.D.

Altairnano has developed nanomaterials for the alternative energy, life sciences and performance materials markets based on a proprietary manufacturing process.

Read Inside Greentech's recent coverage of Altairnano, especially our profile Altairnano power play.