A123 receives needed funds to continue its operations

Struggling A123 Systems Receives Overseas Cash Flow

One of the original lithium-ion battery cell maker A123 Systems has been going through tough times these past few years, flirting with bankruptcy. A Chinese auto party company has just injected $450 million into it.

Wanxiang, one of China's largest auto parts company has just pumped $450 million into A123 Systems to keep the company afloat. In exchange, Wanxiang will receive 80% control of the company and let A123 continue its operations. Company executives added it would give A123 a direct entry into the budding Chinese market with Wanxiang’s electric car subsidiary.

A123 Systems Quality. Something went wrong and it wasn’t always this way. Electric dragster motorcyclist KillaCycle said a year ago he was racing on A123 System original cells. Although he might have gone through many rewiring of electric motors, rebuilding clutches and finding better and improved controllers, something Bill Dube apparently never had to do was to change the original battery cells.

Mavizen also put together the Drayson B12/69 EV battery pack made from A123Systems cells. See our interview with Paul Drayson: What It Takes To Race An Electric Endurance Car. All of those are a testament to the quality of A123, so what went wrong?

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