Federal gets grant extension A123 systems

Published 12 April 2012

By Philippe Crowe

A federal grant of $ 249 million has, to use, A123 systems, Inc. now until December 2014.

Created to promote advanced battery development and job creation in the United States, the US Department of energy (DOE) is acquired by the lithium-ion battery manufacturer provided, to build an A123 battery factory in Michigan.

A123 declared in a financial version last week, that the DOE agreed to extend the contract. A123 originally had until the end of this year on the full amount.

A123 had received from the DOE grant $ 127 million by the end of 2011. Subsidies of this kind provide in General, that the company provided by the U.S. Government must match at least some of the money.

The supplier of GM Chevrolet is A123 selected all-electric spark. A123 is also the manufacturer of batteries for the Fisker karma.

Good news is this grant extension. "" A123 has been shaken recently by a German bank analyst cut his recommendation "buy for the stock to"hold";" and a hit had to $ 55 million if problems with the batteries were Fisker karma.

On the positive side, the A123 co-ownership was Shanghai-based joint venture company selected mid-March, battery packs for a new plug-in hybrid electric (PHEV) sedan from Geely to develop.

A123 does currently have a battery factory site in Livona, Michigan.

Automotive News and A123