Having filed for bankruptcy protection, US electric-car battery manufacturer A123 Systems is set to sell its automotive assets off to auto parts maker Johnson Controls, which will buy A123’s auto business for US$125 million.
The sale includes A123′s lithium-ion battery technology, two factories in Michigan, cathode ray factories in China and an equity interest in a Chinese battery company, according to news reports.
A123 supplies batteries for the Fisker Karma, and its power units were also set to feature in the upcoming Chevrolet Spark EV, which arrives in the market next year. The company also has contracts to make batteries for BMW.
The battery maker has been struggling for several years, with lackluster sales of EVs in the US translating into huge losses for the company. It also ran into more trouble earlier this year after a costly recall of its batteries, the reports add.
The company had earlier said that it might not be able to stay in business unless it received additional financing. Only two months ago, it announced a US$450 million lifeline from Chinese auto parts maker Wanxiang Group, but the deal didn’t materialise.