United States not planning to give A123 rest of grant

Article by Christian A., on December 12, 2012

A123 won’t be given the remaining half of the $249 million grant from the U.S. Energy Department. A department official pointed out the battery maker’s bankruptcy and acquisition by a Chinese auto parts supplier. In the past weekend, the auction for majority of the assets of A123 was won by China's Wanxiang Group.

A123 manufactures lithium ion batteries for electric cars. The department official asked to remain anonymous since the proceedings are ongoing. He clarified that all parties who participated in the bidding for A123 knew about this condition. A123 had at one time been tagged by the Obama administration as a success but it struggled with the low demand for electric cars and some technical failures.

The grant for A123 is part of the Obama administration's $2 billion stimulus initiative to give domestic battery manufacturing a boost. In 2010, Energy Secretary Steven Chu visited one of its plants. The financial problems of A123 were later used by Republicans to criticize the administration's clean energy investments. A123 had gotten around $133 million of its $249 million grant as of October when it filed for bankruptcy protection.

The department official said that even with A123's sale to Wanxiang, the conditions of the grant require taxpayer funded equipment and facilities to stay in the U.S. Concerns have been raised about Wanxiang's takeover of A123 by several lawmakers who said that the sale will have to be approved by the Committee on Foreign Investment in the U.S. Treasury Secretary Timothy Geithner heads CFIUS, an inter-agency panel that vets foreign deals for security concerns. Critics said that the Chinese should not access A123's technology because A123 received government funding. In a statement, U.S. Sen. Chuck Grassley, R-Iowa, said that the review process at the Treasury Department is the “last hope” for guaranteeing a consideration for U.S. interests.

Topics: a123

If you liked the article, share on:

Pin It

Comments

Recommended

To the proud owners and owner-to-be of the Porsche 991 Carrera GTS, there's good news for you all. German automobile manufacturer Porsche recently confirmed to the public that the Porsche...
by - March 23, 2017
McLaren diehards, this is the moment that you're all waiting for. The British automaker recently publicized the teaser outline of its new automobile that will hit the streets soon, dubbed...
by - March 23, 2017
PSA seems very confident about conquering the world. The purchase of Opel/Vauxhall for €2.2 billion ($2.3B) from General Motors makes PSA the second largest car company, just behind the Volkswagen...
by - March 23, 2017
Reporting for duty. It’s been a year since the Victoria Police was loaned a new Mercedes-AMG GLE 63 S Coupe. In those 12 months, the coupe served as the law...
by - March 23, 2017
After making its debut at the Paris Motor Show last year as a concept car, the Trezor by Renault managed to bring home the 2016 Concept Car Design Of The...
by - March 23, 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