Battery Maker A123 Systems Targets $250M in DoE Loans

Oct 21 2009 | 1:54pm ET

Massachusetts-based, lithium-ion battery maker A123 Systems Inc is in “late-stage” talks with the U.S. Department of Energy (DoE) over about $250 million in loans to support its U.S. manufacturing activities.

A123 CEO David Vieau told Reuters his company, which completed a successful IPO in September, will fire up its first U.S. manufacturing facility in Livonia, Michigan in mid-2010 and is now considering other potential production sites in that state.

“We’re in late-stage negotiations on loans from the Department of Energy to support our overall U.S. manufacturing programs,” Vieau said during an auto industry forum in Detroit.

The Livonia plant is expected to employ several hundred workers and produce batteries sufficient to supply 20,000 plug-in electric vehicles. The battery maker says it plans to invest $600 million in the plant.

A123 has already received DoE funding in the form of a $249.1 million grant in August – part of a competition for $1.5 billion in federal stimulus funds for companies producing advanced automotive batteries.

A123 also has manufacturing facilities in South Korea and China.

A123 was spun-out of the Massachusetts Institute of Technology (MIT). The company develops batteries for electric vehicles and plug-in hybrids and works with carmakers such as BMW, Chrysler and GM.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.