"This is what's possible in a clean-energy economy -- these folks right here, doing extraordinary work," President Barack Obama said at the White House Rose Garden after meeting A123 Systems employees on April 30, 2010. "This is what happens when we place our bets on American workers and American businesses."
The U.S. Department of Energy awarded a $249-million grant to A123 Systems in August 2009 with promises of 5,900 jobs, mostly in Michigan. The Michigan Economic Development Corp. also awarded A123 more than $125 million in a variety of tax credits, grants and incentives in 2008 and 2009.
The Waltham, Massachusetts-based company, which has 626 employees and 348 contract workers in three southeast Michigan locations, filed for Chapter 11 bankruptcy on Tuesday, and said auto supplier Johnson Controls had tentatively agreed to pay $125 million to purchase its automotive-related assets, including the operations in Livonia, Romulus and Ann Arbor.
A123 lost $269 million in the first eight months of this year alone. A123's bankruptcy filing comes two months after Chinese auto parts maker Wanxiang Group agreed to invest up to $450 million to acquire up to 80% of A123. But that deal fell apart as A123 was set to burn through $400 million in cash over the next 12 months. A123 has raised approximately a billion dollars over its lifetime. It's all gone now.
Johnson Controls also was awarded a $299-million Energy Department grant for its lithium-ion battery plant in Holland. Johnson Controls are doing just fine, thank you very much. Barclays analysts said in a research note that the deal would make Johnson Controls "the dominant surviving" U.S.-based lithium battery maker.
A123 Systems Files for Bankruptcy - Technology Review
What Happened to A123? - Technology Review
The U.S. Department of Energy awarded a $249-million grant to A123 Systems in August 2009 with promises of 5,900 jobs, mostly in Michigan. The Michigan Economic Development Corp. also awarded A123 more than $125 million in a variety of tax credits, grants and incentives in 2008 and 2009.
The Waltham, Massachusetts-based company, which has 626 employees and 348 contract workers in three southeast Michigan locations, filed for Chapter 11 bankruptcy on Tuesday, and said auto supplier Johnson Controls had tentatively agreed to pay $125 million to purchase its automotive-related assets, including the operations in Livonia, Romulus and Ann Arbor.
A123 lost $269 million in the first eight months of this year alone. A123's bankruptcy filing comes two months after Chinese auto parts maker Wanxiang Group agreed to invest up to $450 million to acquire up to 80% of A123. But that deal fell apart as A123 was set to burn through $400 million in cash over the next 12 months. A123 has raised approximately a billion dollars over its lifetime. It's all gone now.
Johnson Controls also was awarded a $299-million Energy Department grant for its lithium-ion battery plant in Holland. Johnson Controls are doing just fine, thank you very much. Barclays analysts said in a research note that the deal would make Johnson Controls "the dominant surviving" U.S.-based lithium battery maker.
A123 Systems Files for Bankruptcy - Technology Review
What Happened to A123? - Technology Review
