Massachusetts-based A123 Systems has been one of the rising stars of the lithium battery field in the last several years. In spite of that, the company that was started by a team of MIT researchers has struggled to raise cash to manufacture automotive cells in the United States.
Ultimately, the U.S. government came to the rescue with $250 million in stimulus cash to help it build factories in Michigan. Subsequently, the company also raised an addition $380 million through a stock offering, but that is trading well below the offering price (A123 closed at $9.63 Friday, it opened at $17.00 last September). A123 wanted to stay in America to protect its intellectual property because, by building some plants in China for earlier batteries, the companies it worked with copied its technology. A123 Systems has a new plant opening next month in Livonia, MI.
[Source: Los Angeles Times]