Battery Manufactuer A123 Systems Getting $450M Cash Injection from China
The company has acquired around $500- (€406-) million in grants, from both the state and the federal government, of which they currently still have $120- (€97-) million left to spend, and in April, they received a two year extension on the deadline for spending it.
The investment itself "is intended to create the capital structure necessary for the company to continue growing its core businesses, and alignment with Wanxiang is also expected to substantially strengthen A123's access to the growing vehicle electrification and grid-scale energy storage markets in China," according to A123 officials.
However, they apparently needed some fresh capital, because they have also reported losses of $82.9- (€67.4-) million for the second quarter of 2012, which have increased from the $55.4- (€45.05-) they lost in the same period of last year.
Story via autonews.gasgoo.com