A123 Reaches Final Agreement with Chinese Investor
DETROIT — A123 Systems, a government-backed maker of batteries for electric vehicles, said Thursday it had reached a final agreement with a Chinese company that will provide emergency capital and eventually acquire a controlling stake.
The deal with the Chinese company, the Wanxiang Group, one of China’s biggest auto suppliers, is considered crucial to the survival of A123, a centerpiece of the Obama administration’s efforts to support battery manufacturing in the United States.
A123, which is based in Waltham, Mass., said that Wanxiang will provide $25 million immediately. Over time, Wanxiang is expected to invest a total of $465 million and take an 80 percent ownership interest in A123.
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