Filed under: Emerging Technologies, EV/Plug-in

If you're lithium-ion battery maker A123 Systems and have been through the public image ringer with the Fisker Karma battery pack recalls and an explosion at General Motors' Warren Tech Center, what do you do? After all, getting U.S. Dept. of Energy Grants, rolling out a resilient Nanophosphate EXT phosphate battery and signing a deal with Smith Electric Vehicles, can only get you so far. So, how about bringing in a Chinese investor? That is working pretty well for Volvo.
A123 Systems signed an agreement on August 8th with Wanxiang Group Corporation that could bring in a $450 million investment and give the large Chinese automotive components manufacturer an 80 percent ownership stake. The non-binding agreement with Wanxiang brings in needed cash flow and gives A123 Systems access to vehicle electrification and grid-scale energy storage in China.
Republican House of Representative Cliff Stearns questioned the safety of the agreement, writing in a statement that, "It appears the Department of Energy and the Obama administration have failed to secure sensitive taxpayer funded intellectual property from being transferred to a foreign adversary, which raises serious national security issues. ... There is definitely a growing concern about foreign- controlled or owned companies attempting to gain a foothold into our supply chain in the United States. We need to make sure the Federal government isn't an unwitting accomplice to the theft of our own national secrets by providing them with multimillion-dollar government grants and loans."
Making battery packs for electric vehicles is not an easy business to break into. Automakers tend to build them in-house or hire a veteran company like Panasonic. For battery companies, supplier contracts help, but are not a guarantee. Battery maker Ener1 found this out when the Norwegian carmaker Think stopped production of its Think City electric car at its Elkhart, IN, assembly plant. As for A123 Systems, it's been a rough ride, but things could be looking up.
Continue reading A123 Systems brings in Chinese investor to calm the waters
A123 Systems brings in Chinese investor to calm the waters originally appeared on AutoblogGreen on Thu, 09 Aug 2012 18:05:00 EST. Please see our terms for use of feeds.
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