More red ink for green tech

You may have read last month about the cash-flow problem at battery maker A123 Systems, to the effect that they would burn through their remaining cash in five months or so.

Well, they now have some cash, but they no longer have their autonomy:

Auto parts supplier Wanxiang Group will take a controlling interest and invest $450 million in the Massachusetts-based battery maker.

Nor is A123 the only “green” manufacturer recently bailed out by foreign investment:

Earlier this year, Ener1 Inc, another battery maker that received a government green technology grant, emerged from Chapter 11 bankruptcy under the control of Russian investor Boris Zingarevich. New York-based Ener1 is also a joint-venture partner in China with a Wanxiang subsidiary.

The lesson seems clear: what the Obama administration can’t do, Lu Guanqiu can and apparently will.

(Via The Truth About Cars.)

1 comment

  1. Tatyana »

    11 August 2012 · 8:07 am

    So, we are supplying money under the label “green” grants – at the end of the chain – to Chinese wild capitalists. No surprise there.
    I wonder how long the pretense of “green” will stay with their batteries?

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