A123 Systems Inc., developer of Nanophosphate lithium-iron-phosphate batteries and systems for electric vehicles and grid energy storage, has filed for bankruptcy and entered into an asset purchase agreement with Johnson Controls Inc.
Under the terms of the $125 million agreement, Johnson Controls plans to acquire A123's automotive business assets, including all of its automotive technology, products and customer contracts; its facilities in Livonia and Romulus, Mich.; its cathode powder manufacturing facilities in China; and A123's equity interest in Shanghai Advanced Traction Battery Systems Co., A123's joint venture with Shanghai Automotive.
"We believe the asset purchase agreement with Johnson Controls, coupled with a Chapter 11 filing, is in the best interests of A123 and its stakeholders at this time," says David Vieau, CEO of A123. "We are pleased that Johnson Controls recognizes the inherent value of our automotive technology and automotive business assets."
The asset purchase agreement also includes provisions through which Johnson Controls intends to license back to A123 certain technology for its grid, commercial and government businesses. A123 says operations will continue during the acquisition and bankruptcy restructuring.
