A123 System's New Battery Won't Stave Off Bankruptcy
By Kraken:A123 Systems (AONE) recently announced that it has developed a new piece of technology that would make electronic vehicles cheaper. The new battery would no longer need a separate cooling system to cool the battery.The company believes that this new battery would mean heavy adoption from companies such as General Motors (GM), which already has contracts with A123 to make batteries for the Chevy Spark.The battery is said to start entering production phase in the beginning of 2013. A123 has already been in hot water after a recent explosion at a GM lab has strained the relationship between the two companies. A123 is counting on this battery to help the company get enough contracts to help stave off financial bankruptcy.However, I still believe that the company will collapse under its obligations. Currently, the cost of revenue well exceeds the revenue. Last quarter, the company lost $125 million.Complete Story »
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