recommended reading

Battery maker with nearly $250 million in federal grants files for bankruptcy

GOLFX/Shutterstock.com

Electric car battery manufacturer A123 Systems Inc. filed for Chapter 11 bankruptcy protection Tuesday, the Wall Street Journal reports.

The Waltham, Mass., company has received nearly $250 million in federal grants and $358 million in venture funding, the article said. Milwaukee-based Johnson Controls offered to purchase two Michigan manufacturing facilities built by A123 Systems, along with assets in its automotive battery business, the Energy Department said.

Chinese auto-parts maker Wanxiang Group, which agreed earlier this year to provide A123 with as much as $465 million in loans and bonds convertible into an 80 percent stake, said it is still interested in taking over the company, according to Bloomberg.

While A123's bankruptcy has been touted as a setback for the Obama administration's efforts to foster a market for electric vehicles, Energy stressed that the firm had received bipartisan support. The company in 2007 received a $6 million dollar grant from the Bush administration, the agency highlighted.

Threatwatch Alert

Thousands of cyber attacks occur each day

See the latest threats

JOIN THE DISCUSSION

Close [ x ] More from Nextgov
 
 

Thank you for subscribing to newsletters from Nextgov.com.
We think these reports might interest you:

  • Modernizing IT for Mission Success

    Surveying Federal and Defense Leaders on Priorities and Challenges at the Tactical Edge

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • Effective Ransomware Response

    This whitepaper provides an overview and understanding of ransomware and how to successfully combat it.

    Download
  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download

When you download a report, your information may be shared with the underwriters of that document.