Bankrupt lithium-ion battery maker A123 Systems may have gained a new owner, but will lose a lot of money in the pending sale to China-based Wanxiang Group, Reuters reports, citing an unidentified US Energy Department official.
Specifically, A123, which filed for bankruptcy in October, will forgo about $116 million of the original $249 million grant. Wanxiang Group, which offered $256.6 million for A123, outbid Johnson Controls and didn't expect to receive the remainder of the grant funds, the wire service said. A123 declined to comment.
Some members of Congress have expressed concern that an A123 sale to a Chinese company creates the potential for US technology secrets to be passed on to China. Johnson Controls, along with Japan's NEC, bid about $251 million for A123.
The Wanxiang Group acquisition would include A123's factories in Massachusetts, Michigan and Missouri. It is subject to approval from the Delaware bankruptcy court.