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

Article by Christian Andrei, 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:


Login or Create new account to add a comment!


It wasn’t too long ago when Maserati took the wraps off what appears to be the most gorgeous concept coupe ever made. The Alfieri coupe premiered at the 2014 Geneva...
by - October 23, 2016
Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016