The two companies executed definitive agreements and the subsequent investment in A123 will provide the company with the required capital to strengthen its position in the global vehicle electrification and grid energy storage markets.
Commenting on the investment secured A123 CEO David Vieau said that the investments validate the company’s technology and its ability to compete in high-growth markets.
"We believe that the significant commitment of capital from Wanxiang would help strengthen A123’s financial position, and by leveraging Wanxiang’s global capabilities, we expect to see increased demand for our products," added Vieau.
In addition to the $25m credit extension Wanxiang, China’s largest automotive components manufacturer and largest non-government-owned companies, will provide $50m initial debt financing under a senior secured bridge facility with overall investments to go up to $465m as stated earlier.
