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Saturday, April 7, 2012

A123 Battery Company is now trading at $0.82 a share!

A123 the maker of Lithium-ion batteries was trading at $0.82 on Thursday. As some of you may be aware of, they have just had to recall a bunch of their batteries. Something about the tabs not being welded on properly.

This news does at all come at an opportune time for A123 nor the government. As you see A123 had been given $249.1 million, as a federal economic stimulus grant.

Replacing these defective batteries is thought to cost them $55 million.

On the other hand, Chinese battery factories are blooming, and they’re doing that for a good reason: their products are cheap. Well, you know how they say: “you get what you pay for,” but eventually the Chinese EV batteries will end up reaching the quality of A123, because they’ll be forced by the market and car manufacturers to do so. Still, one may think the quality would drop if A123 would go bankrupt – it’s debatable, but I don’t think it’ll happen.

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