A123 Won’t Get Remainder of DOE Loan

The U.S. Dept. of Energy says bankrupt lithium-ion battery maker A123 Systems will not be eligible to received the $116 million balance of a $249 million government grant that has not been disbursed.

China's Wanxiang Group has agreed to buy most of the Waltham, Mass.-based battery company for $257 million. Republican lawmakers are irked that ownership of taxpayer-funded A123 will pass to a foreign company.

The DOE notes that the grant paid for equipment and facilities in the U.S. to promote the development of advanced batteries to power electric vehicles.