Florida Representative Cliff Stearns expressed concerns about the A123 deal shortly after the company's memorandum of understanding with Wanxiang was made public. Stearns takes issue with the investment agreement because A123 received a $249.1 million grant form the Department of Energy.
Per the terms of the investment deal, Wanxiang has the option to buy an 80 percent stake in A123.
A123 has fallen on hard times as of late and warned last month that it only has enough cash on hand to survive for another five months. Without the cash infusion from the Wanxiang deal, it's quite possible that the Massachusetts-based battery maker could be forced to close its doors for good.
