Investing the Recovery Act - Battery Manufacturing Grant for A123 Systems
In this Recovery Act series lets look at a relatively new company that is focusing on technology of the future. We are looking at project 20 on the Recovery Act Report - Battery Manufacturing and Electric Drive Component Grants for A123 Systems.
The Recovery Act has awarded A123 Systems (AONE) $249 million to build battery factories in Livonia, Romulus, and Brownstown, Michigan. The grant gives boost to the state which has been hit hard by the falling economy. These factories aim to give United States the edge in battery manufacturing technology which is a critical link for other clean energy technologies such as electric vehicle.
A123 Systems has already hired 90 new workers since receiving the fund in December 2009 and is expecting to add over 3,000 jobs by 2012. In addition A123 has signed contracts with Navistar and Fishker and is working with several carmakers. The first shipment of A123's battery is expected in September of 2010.
Shares of A123 Systems, however, have not been doing well for the past 52 weeks. The stock is down from $25.77 in October 2, 2010 to $8.92 at the moment. The company is making $91 million in revenue while losing $86 million every year. Therefore getting $249 million from the government is a big boost to A123. With roll-out of electric vehicle nationwide coming this is a stock people should seriously consider in their portfolio for the year to come.
The Recovery Act has awarded A123 Systems (AONE) $249 million to build battery factories in Livonia, Romulus, and Brownstown, Michigan. The grant gives boost to the state which has been hit hard by the falling economy. These factories aim to give United States the edge in battery manufacturing technology which is a critical link for other clean energy technologies such as electric vehicle.
A123 Systems has already hired 90 new workers since receiving the fund in December 2009 and is expecting to add over 3,000 jobs by 2012. In addition A123 has signed contracts with Navistar and Fishker and is working with several carmakers. The first shipment of A123's battery is expected in September of 2010.
Shares of A123 Systems, however, have not been doing well for the past 52 weeks. The stock is down from $25.77 in October 2, 2010 to $8.92 at the moment. The company is making $91 million in revenue while losing $86 million every year. Therefore getting $249 million from the government is a big boost to A123. With roll-out of electric vehicle nationwide coming this is a stock people should seriously consider in their portfolio for the year to come.
posted by Stock Geek at
8:58 AM
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