The troubled battery maker A123 Systems filed for bankruptcy on Tuesday, dealing a blow to the Obama administration’s program to jump-start a domestic battery industry and spur development of electric vehicles.
A123, based in Waltham, Mass., was once considered one of the most promising grant recipients under the administration’s $2 billion stimulus program for electric car development. The Department of Energy awarded the company a $249 million grant to establish battery manufacturing operations in Michigan, although A123 had received only about $132 million of the grant before its bankruptcy.
A123’s bankruptcy is yet another failure for the government's disastrous strategy of gambling away billions of taxpayer dollars on a plan that simply does not work. The bankruptcy raises the prospect that the taxpayers will get little or no return on their investment in A123 and will lose millions of dollars.
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