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EXPANSION PLANS CEO David Vieau said the additional federal loans, if approved, would be used to grow A123’s US operations. |
Around the Region
Battery maker seeks $235m from US
Watertown battery maker A123 Systems, which recently went public, is negotiating with the federal energy department to secure $235 million in loans to help the company expand in the United States, chief executive David Vieau said yesterday.
“It’s not done, but it’s in discussion,’’ Vieau said. He was speaking from Michigan, where he was at an industry forum.
In August, A123 received a $249.1 million grant from the US Department of Energy to help build a manufacturing facility in Livonia, Mich. Vieau said the additional federal loans, if approved, would also be used to grow A123’s US operations. It already has smaller facilities in South Korea, China, and Massachusetts.
The company makes powerful and quick-charging batteries using lithium-ion technology. It has partnership agreements with seven car companies around the world, including Chrysler, that are interested in using the technology for electric vehicles.
Late last month, A123 began trading on the Nasdaq stock exchange, and on its first day, the company made a strong showing that signaled investor confidence in the future of electric cars. That initial public offering of stock raised about $380 million for A123 - funds that it plans to use, at least in part, to match government funding.
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