A123 Reaches Final Agreement with Chinese Investor

The deal with the Chinese company, the Wanxiang Group, one of China’s biggest auto suppliers, is considered crucial to the survival of A123.

Published: 22-Aug-2012

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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