Earlier this month A123 announced it had lined up an investment deal with Wanxiang group worth up to $465 million, with that agreement expected to bear fruit by week's end. In a statement issued on Thursday, A123 said Wanxiang is preparing to cut the battery maker a check for $25 million.
Although A123 has warned that it could run out of money within months without an outside investment, Florida Representative Cliff Stearns has called the deal with China-based Wanxiang into question. A123 has received $249.1 million in federal funding and Stearns is concerned that "sensitive taxpayer funded intellectual property could be transferred to a foreign adversary." However, the fact that A123 is expecting its first investment this week indicates Stearns' issue with the deal has fallen on deaf ears.
