Photo: A123 Systems
Battery manufacturer A123 Systems Ltd. has hit a bit of a rough patch, recently, and the company is only now starting to recover. To further boost their effort, a Chinese auto parts company, Wanxiang, will be investing up to $450- (€366-) million. This will grant the Chinese investors an 80% stake in the company, so they will be able to then steer it as they see fit.
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
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
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