The Detroit News reports lithium-ion battery manufacturer A123 Systems is set to post a net loss of $125 million on revenue of $10.9 million for the first quarter of 2012. Official results will be released later this week. The loss includes $51.6 million tied to replacing battery packs produced at the company's Livonia, Michigan facility. Some of those packs could have been manufactured with defective cells. The figure also includes $15.2 million to increase inventory reserves.
As you may recall, A123 Systems provides battery packs for companies like Fisker. The extended-range EV manufacturer recently reported issues with the supplier's products, but A123 says it has determined the cause of the defective cells and is working to make sure the failures don't reoccur.

The report also suggests A123 Systems will lower its revenue forecast for the year to $145 million to $175 million. The company originally projected it would generate between $230 million and $300 million.


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    • 1 Second Ago
  • 18 Comments
      Morgan Reale
      • 3 Years Ago
      This is another wish wash of money - If you dig deeper you will see that this company received Millions of dollars in government money.... This is a crooks game , the executives get paid big $$ while money is moved around... just look at GM that is the biggest scam of all - lets write off everything and everyone then-re open our banks -- GMAC is coming back Allied will become the next mortgage bank arm of GM --
        • 3 Years Ago
        @Morgan Reale
        [blocked]
      Jason
      • 3 Years Ago
      Some interesting facts missing from this story: $249.1 M grant from the DOE $125 M in tax credits from the Michigan Economic Development Corp. $17.1 M loan guarantee from the DOE. $5 M loan from the state of Massachusetts. Weird. I wonder why HuffPo's Autoblog would leave this out?
        • 3 Years Ago
        @Jason
        [blocked]
        Polly Prissy Pants
        • 3 Years Ago
        @Jason
        You mean ourgovernment is providing money for alternative energy research and development? Get outta here....
          LEDfoot
          • 3 Years Ago
          @Polly Prissy Pants
          That's ridiculous, do you have any idea of what the payoff will be for any company that makes an actual break-trough in battery technology?! The windfall profits will be astronomical, the government does not need to add any incentives there, all the government money does is allow players that have no business being in this field to be in it.
          Jason
          • 3 Years Ago
          @Polly Prissy Pants
          1. It's not the government's job to provide money to private businesses. 2. They're really, really bad at it.
          • 3 Years Ago
          @Polly Prissy Pants
          [blocked]
      Smooth Motor
      • 3 Years Ago
      Only a $125 million loss for an EV related company? Wow! That's like a net profit of $200 million in the real world!
      Murad
      • 3 Years Ago
      I thought this topic wouldn't become political. /s
      Making11s
      • 3 Years Ago
      Wasn't it an A123 battery that hurt all of those people and damaged a GM research facility?
        Randy
        • 3 Years Ago
        @Making11s
        I thought it was another name. Something with an E. But I also thought it was a GM battery, not a 3rd party! But hey, I read about it early on in the news, lots could have changed as new info was announced.
          Making11s
          • 3 Years Ago
          @Randy
          http://www.autoblog.com/2012/04/12/five-people-hurt-in-gm-lab-explosion-a123-battery-reportedly-re/ Just confirmed it. It was an A123 battery at a GM R&D facility.
        Donny Hoover
        • 3 Years Ago
        @Making11s
        Yes, it did ignite in a GM research facility. What people keep failing to realize though, is that they purposely test them in a lab like that so they don't blow up in the vehicle. It isn't hard to make a lithium battery of any brand ignite. Just hop on youtube and look at the videos that the RC hobbyists post.
      Rick C.
      • 3 Years Ago
      Anyone know if they manufacture high performance lithium batteries for other consumer applications, like computers, etc.?
        KJMX-5
        • 3 Years Ago
        @Rick C.
        Batteries for R/C cars and portable power tools (DeWalt, etc.) is where I first heard of them.
          • 3 Years Ago
          @KJMX-5
          [blocked]
          Donny Hoover
          • 3 Years Ago
          @KJMX-5
          SNP, yes, because the Dell/HP/Sony/Intel batteries that explode in laptops should clearly serve as a benchmark for other companies.
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