Tagged: A123

The State of Michigan says the new owner of bankrupt battery maker A123 Systems cannot get the company's state tax credits.

In April, 2009 the state awarded a “high-tech state tax credit” worth a little more than $25 million over 15 years and a “battery cell state tax credit” worth $100 million over four years

China’s Wanxiang Group (specially, one of it's American-based subsidies) bought most of A123 Systems' assets for a little more than $250 million. A123 says those assets include the state tax credits for two battery plants in Romulus and Livonia.

Dow Kokam, the advanced battery manufacturer, has laid off 40 to 60 employees at its Midland Battery Park and another factory in Missouri.

The company had about 250 U.S. employees, with 95 at its Midland site.

Bill Gagliardi, the company’s director of public affairs and branding told the Midland Daily News that the cuts were necessary to stay competitive in a weak market battery market:

A123, the bankrupt battery company with factories in Livonia and Romulus, announced Sunday that a Chinese firm will acquire most of its assets.

In an auction administered by the U.S. Bankruptcy Court for the District of Delaware, Wanxiang Group Corp. purchased most of the company’s commercial business assets for $256.6 million.

The acquisition has some Republican lawmakers worried.

From the Detroit Free Press:

Republican US Senate candidate Pete Hoekstra says there are alternatives to using government subsidies to encourage new energy industries and the jobs that go with them.

He said the proof is the business troubles facing two advanced battery companies with a presence in Michigan.

A123 filed for bankruptcy last week and LG Chem has furloughed its employees.

Hoekstra said that means millions of dollars in taxpayer subsidies were “wasted.” He said the subsidies also reward companies for working at applying for grants rather than their core business.

US Senator Carl Levin says the federal government needs to invest in renewable energy companies, even if those investments sometimes go bad. Levin made the remarks during a visit to Grand Rapids Community College today.