A123 Systems Inc., the electric-car battery maker that filed for bankruptcy this week, had promising chemistry and marquee customers. What it couldn’t overcome, even with government funding, were missteps in manufacturing.
A123 Systems Inc., the electric car battery maker that received a $249.1 million federal grant, filed for bankruptcy protection and said it would sell its automotive business assets to Johnson Controls Inc.
A123 Systems Inc. said it’s replacing defective battery packs and modules it supplies to customers, including Fisker Automotive Inc., and that the flaw caused a Fisker Karma to shut down in a Consumer Reports test.
The Chinese auto-parts maker that previously bailed out A123 Systems Inc., the U.S. electric-car battery maker that filed for bankruptcy protection this week, said it’s still interested in taking over the company.
A123 Systems Inc.’s chief executive officer said the company’s financial rescue by China’s largest auto-parts maker will preserve U.S. jobs, after the agreement drew criticism from congressional Republicans.
A123 Systems Inc. rose 52 percent, the company’s largest increase, after the maker of electric-car batteries said it has developed an improved lithium-ion cell that can cut costs of rechargeable and hybrid vehicles.
Falling prices for lithium-ion batteries will make power-storage systems competitive with natural gas as a source of electricity during periods of high demand by 2016, according to the chief executive officer of A123 Systems Inc.