a123 systems files for bankruptcy - lithium ion battery cost

A123 Systems Inc. , Waltham lithium-ion battery manufacturer.
Filed for bankruptcy protection in a federal court in Delaware on Tuesday, saying it would cancel a major deal with a Chinese auto parts group that is expected to save the company and announced it would sell its cars
Assets related to another battery manufacturer in the United States.
For an alternative energy company that was once seen by President Barack Obama and Governor Deval Patrick's administration as a key component of clean energy, this is an amazing fall
Energy economy.
S. Department of Energy has injected hundreds of millions of dollars into A123, including a nearly $0. 25 billion grant to build a car battery plant in Michigan.
Bankruptcy soon became a problem in the presidential election.
The campaign of former Governor Mitt Romney has stepped up attacks on Obama's energy and economic policies, pointing out that Obama promised to create 5 million green energy jobs in his 2008 campaign.
"The bankruptcy of A123 is another failure of the president's disastrous strategy of gambling billions of taxpayer dollars on government strategy --
Andrea Sol, a Republican presidential candidate and former Massachusetts governor Mitt Romney spokeswoman, said.
"While the president says he will" double "in his second term, Governor Romney will re-focus the federal government on supporting the appropriate role of research and creating an environment for innovation and prosperity in the private sector.
Obama administration officials did not immediately respond to requests for comment.
Prior to A123's bankruptcy, several other well-known clean energy companies, including California solar panel maker Solyndra LLC, failed to receive more than $0. 5 billion in federal support.
Waltham's decline was due to a slowdown. than-
With economic difficulties and a slowdown in crude oil prices in recent years, hybrid and electric vehicles are expected to be adopted.
In recent months, A123 has tried to move its product line further from cars to power storage in utilities and other markets.
But it's too late for a company, and analysts say the company is fighting to survive, balancing it with a knife.
"AOne sold most of the products at a loss, which means that the cost of making the product is 1 times higher than the cost it can sell," Andrea James said . ", Senior research analyst who tracks Doherty company A123
LLC in Minneapolis.
"There is no benefit in becoming an industry leader in a loss-making business.
A123 has been warning investors for months that it is in danger of running out of cash.
But in August, it appeared to be rescued after a $0. 465 billion deal with Wanxiang. Wanxiang Group, a Chinese autonomous driving group, has invested heavily in American technology.
Wanxiang could eventually have a controlling stake in the company.
However, the deal ended with g a123's bankruptcy application.
Instead, A123 said it had signed an asset purchase agreement with Johnson Controls.
The company also received hundreds of millions of dollars in federal funding to develop its battery business.
In a $0. 125 billion deal, Johnson Controls plans to acquire the assets of a123's car business, including its factories in Livonia and Romulus, Michigan.
A123 chief executive David Vieau said in a statement on Tuesday: "We are determined not to move forward with the Wanxiang agreement announced earlier, because the completion of the agreement faces unexpected significant
A123 declined to comment further.
In early summer, the company employs 2,400 employees worldwide.
Including nearly 400 people in Massachusetts.
A company spokesman will not say how many of these employees are left, nor will it say how many people may be laid off by bankruptcy claims and Johnson Control's deal.
In 2009, A123 made an initial public offering, raising about $0. 38 billion through an initial public offering.
Also in 2009, A123 received $249.
S. Department of Energy's 1 million grant to build a battery manufacturing business in Michigan.
At its peak in 2009, A123 shares topped $25.
Shares on Tuesday afternoon were six cents.