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US: Battery maker A123 rescued by Chinese

By Dave Leggett | 17 August 2012

Struggling US battery maker A123 Systems has signed an agreement to receive a US$465m financial injection from Chinese parts maker Wanxiang Group Corp.

Hangzhou-based Wanxiang will own 80% of Massachusetts-based A123, if all the warrants and notes are later converted to shares, A123 said in a statement.

A123's rescue by a Chinese company is likely to be politically controversial in the US as the company has received a green energy grant from the Obama administration.