Wednesday, October 21, 2009

A123 reported to be seeking $250M in loans

By Jackie Noblett

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Not even three months after it netted $249 million in stimulus dollars to build a manufacturing facility in Michigan, A123Systems Inc. is finalizing a deal with the U.S. Department of Energy for another $250 million, this time in loans for that facility’s construction, according to a report from Reuters.

In an interview with the news service Tuesday, A123 CEO David Vieu said the company is in “late-stage negotiations” with the DOE for the money, which would allow the company to build its Livonia, Mich.-based battery plant in time to begin production mid-2010. The company currently produces lithium ion batteries for portable tools in Asia, and it is working with Chrysler Group LLC to produce batteries for the car maker’s electric vehicles.

The stimulus dollars awarded under the $1.5 billion advanced battery manufacturing program must be matched by the Watertown company. A123 raised $378 million in its initial public offering Sept. 24.