Electric vehicle battery maker A123 received almost $250 million in funding from the government in 2009. This morning, the company announced it would not be able to meet loan payments and is now in bankruptcy. The stock cratered from an already abysmal 24 cents a share to 6 cents.
Johnson Controls will buy automotive assets and factories from A123.
On October 16, 2012, A123 Systems, Inc. announced that it has entered into an asset purchase agreement with Johnson Controls, Inc., which plans to acquire A123’s automotive business assets, including all of its automotive technology, products and customer contracts,
The government funds startups and tech all the time. This is a good thing. The internet and solar power emerged out of government funded enterprises. However, the A123 bankruptcy will make it even harder for cleantech startups to get funding now even though the vast majority of clean energy and battery projects funded by the government are solvent.