A123 Systems gets two more years to use the U.S. Department of Energy grant

Article by Christian A., on April 13, 2012

A123 Systems Inc. and the U.S. Department of Energy have agreed to extend the contract over a $249 million grant for a factory in Michigan, according to a U.S. Securities and Exchange Commission filing last Wednesday. A123 now has two more years or until December 2014 to fully take advantage of this grant from the administration of Obama to support advanced battery development and generate jobs in the U.S.

A123 spokesman Dan Borgasano said that it was given the grant in 2009 and had until the end of 2012 to fully make use of the grant. Borgasano added that with the extension, A123 can continue on its growth path in Michigan. A123 got a $127 million of the DOE grant at the end of 2011. What A123 had to do was to match at least a portion of the money that the U.S. government provided.

What usually happens is that the recipients of these grants get reimbursements for their expenses on approved projects. In the past few months, some setbacks have hurt A123's financial position and its stock dropped by over 40% so far this year.

Last Wednesday, there was an explosion at a General Motors research lab in suburban Detroit from a lithium ion prototype battery, injuring one employee. Sources told The Wall Street Journal that A123 Systems had built this battery. Batteries for GM's new all-electric Chevrolet Spark are expected to be made by A123.

Topics: a123

If you liked the article, share on:

Pin It

Comments

Recommended

Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 2017
Since 1993, Lexus has produced 4 generations of the Lexus GS, with the GS F amongst its newest member of the family. Unfortunately, rumors are also heating up that the...
by - March 24, 2017
In a leaked image following a presentation held in China, we learned that Czech automobile manufacturer Skoda will soon unveil 2 more new SUVs in China, resulting in a four-model...
by - March 24, 2017
McLaren is said to be designing the next generation of Sports Series, which could include a V6 hybrid among its powertrain options. It was earlier reported that the British automaker...
by - March 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries