battery maker a123's bankruptcy underscores u.s. hurdles for clean tech - small lithium ion battery

Serious disagreements over the US energy issue emerged from time to time during the presidential debate on Tuesday night.
But an incident a few hours ago-the bankruptcy application for lithium-ion battery maker A123 systems s clearly demonstrates the complexity of the task any president faces in developing future competition --
Find the technology of transportation in the future.
A123 received nearly $0. 256 billion in public funding from Bush and the Obama administration, saying on Tuesday that Milwaukee-
S. -based battery giant Johnson Controls plans to acquire the company's car business. (
View related blog posts: a123 bankruptcy by Digital)
A123 has developed energy storage technology for power grids, electric vehicles and commercial applications.
Johnson Controls deals worth $0. 125 billion, including two plants built in Michigan. S.
Department of Energy.
It will also provide $72.
5 million continue the operation of a123 in financing.
A123 said discussions on "strategic alternatives" were continuing for other areas of its business.
A123 shares plunged 18 cents to 6 cents a share on Tuesday
In December 2009, just a few months after the company's initial public offering, it hit a time high of $22 per share.
On August, the China Automobile Industry Association announced that,
Wanxiang Group, a component manufacturer, will invest $0. 45 billion in the company to provide
Cash needs to be injected.
But A123 CEO David Vio said in a statement that the investment was not "due to the unexpected and major challenges of completing the investment ". (
See "Snapshot: China's investment in North American energy in 2012 ")
But Universal president of the United StatesS.
Operations said on Wednesday that it was still interested in acquiring A123 and that filing for bankruptcy could remove some legal obstacles.
"In an emerging industry, as the industry develops and matures, it is common to see some companies merge with other companies," Dan Leistikow, director of public affairs at Doe, said in a statement on Tuesday, the bankruptcy of a123 and the transaction with Johnson control, another DOE grant winner.
"Today's news means that the manufacturing facilities and technology of a123 will continue to be an important part of the advanced battery industry in the United States.
Steve Minnihan, an analyst at Lux research, a market research firm, said: "However, the company's trajectory follows an increasingly common arc:" a North American startup develops technology in the field of energy storage, it will only lose to Chinese and Japanese competitors, "and in some cases, it will eventually go overseas.
This situation reflects the situation of energy storage startups like Boston --
Electricity, and the solar industry, he said.
A123 has this technology in some respects, but lacks the length of the runway required for success.
A123 is by far the largest lithium
Ion battery suppliers in the utility sector.
They are regarded as the golden standard of grid space technology. Said Minghan.
"But even at the end of 2012, potential utility customers did not understand the value proposition of lithium-ion batteries, and there was no urgent need for the technology.
"Conservative and slow in general --
He said that mobile utilities want to see lower costs, as well as at least two or three years of data, showing the performance of a123's systems in the field before they are put into use.
Nevertheless, A123 has made significant progress in the utility sector, and its technology can store energy from wind and solar power plants to make renewable energy available all-weather.
"They have done a lot of hard work trying to farm the soil in the utility space.
This is their greatest achievement . "
However, A123 is often more associated with electric vehicles than it should be because its business in the transportation sector is small, says Minnihan.
In other deals, the company won a supply contract for GM's upcoming Chevrolet Spark EV city car, which is scheduled to be produced in small quantities next year;
Car from Fisk, plug
Among the Obama administration-backed hybrid car start-ups, technical and financial difficulties have been encountered; from plug-
Through the motor in the truck converter;
Active hybrid 3 and 5 series from BMW. (
See gallery: "Eleven electric cars charge forward in obstacles ")
The company claims to be the world's largest supplier of hybrid bus battery systems.
According to John Gartner, an analyst at Voyager Consultancy Pike Research, such deals are "impressive for a startup because they compete with Korean and Japanese companies, these companies have much longer experience in manufacturing lithium-ion batteries for other markets. " (
See gallery: "Seven ingredients for better electric car batteries ")
Cultivating a domestic battery supplier that can compete face-to-face with overseas giants is part of the idea that the government has awarded a123.
According to a telephone record from the White House, President Obama congratulated A123 Systems on opening a manufacturing plant in September 2010, saying, "When people lift their hoods on future cars, I want them to look at the engines and batteries made in the US.
This is what you are helping to achieve.
"So far, however, the market for these cars in the future is still in the doldrums.
Since 2011, the United States has sold only 50,000 electric vehicles, accounting for about 5% of President Obama's target of 1 million electric vehicles in the United States. S. roads by 2015.
A123 is lacking in the competition to win many of the biggest contracts --Emerging markets.
"If we look back 10 years later, lithium
The ion market is booming and A123 will not be a hero to bring the market, "Minghan said.
"They are just one of them. " (
Related Photos: "Rare Look Inside a 55 MPG car manufacturer drive ")
This story is part of a special series to explore energy issues.
For more, please visit the huge energy challenges.
Correction: In the previous version of the story, the title incorrectly pointed out that the Obama administration's funding for A123 took place in 2008.
The date has been corrected to 2009.