Wanxiang To Pour $450M Into Battery Maker To Gain 80% Stake

Law360, New York (August 8, 2012, 4:16 PM EDT) -- Chinese auto parts giant Wanxiang Group Corp. has agreed to invest up to $450 million in Massachusetts-based battery maker A123 Systems for a majority stake in the company, A123 announced Wednesday.

The lithium iron phosphate battery manufacturer, which received a $249 million renewable technology grant from the Obama administration in 2009, said it had signed a memorandum of understanding with Wanxiang. Under the MOU, Wanxiang would acquire a 80 percent stake in A123 in exchange for a series of capital infusions to finance and pay down...
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