After Massive Losses, Stimulus-Backed Company Asks for More Taxpayer Cash
A financially troubled green energy company has seen its stock prices plummet to below a dollar per share since receiving a nearly $250 million federal grant in 2009. The company lost $257.7 million last year. Two of its clients make up half of its business, and one is also struggling financially.
But none of that has stopped A123 Systems, which manufactures batteries for electric vehicles, from applying for another $233 million in federal backing through the Energy Department’s Advanced Technology Vehicle Manufacturing program, according to its latest filing with the Securities and Exchange Commission.
“We have made a loan application under the Advanced Technology Vehicles Manufacturing Loan Program, or the ATVM Program, to support our continued manufacturing expansion,” A123 said in the SEC filing. “Based on the amount of our grant award under the DOE Battery Initiative and the guidelines associated with the ATVM Program, we believe we will be permitted to borrow up to $233 million under the ATVM Program.”