Blog: China rescue of A123 battery firm raises policy and political questions
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17 Aug 2012
Earlier this week the great mystery of what is going to happen to A123 Systems, which has been bleeding cash at an unsustainable rate, was answered when it announced that China’s Wanxiang Group Corp. had agreed to invest up to $450 million in exchange for an up to 80% interest in A123 Systems. Wanxiang is a huge Chinese conglomerate that makes lithium-ion phosphate batteries in China and has an existing joint venture with US battery maker EnerDel.
The deal is ringing alarm bells in Washington.
