Why A123 is more than letters and numbers.
A high tech company named A123 Systems could be sold to the Chinese in the coming days. While normally this would seems like a small matter in the world of technology and business, it turns out it could be a much larger issue. With important technology potentially being lost to a chief rival one must ask a few questions regarding this unique situation.
Who is A123 Systems?
A123 is a high tech company that has been working on over a decade of advanced technology in cooperation with the federal government and NASA. Under the 2009 stimulus the company received $249 million in hopes to help spur growth from the battery maker.
Originally developed by NASA’s Jet Propulsion Laboratories, the technology behind the ultra-light lithium-ion phosphate batteries being bought will play a major role in modernizing the way electricity is generated and distributed. The new tech could also be used in key military operations and to power satellites and unmanned military drones.
Could a pending ruling could save A123.
Before the deal is done, the Committee on Foreign Investment will need to sign off on it. The CFIUS, headed by outgoing Treasury Secretary Timothy Geithner, is in the process of reviewing the sale — though since its creation, the CFIUS has been reluctant to intervene in similar sales. But as the pressure to stop the sale mounted over worries that giving up decades of scientific study could cripple the country’s ability to compete with China in the future, Wanxiang came up with a plan of its own.
With the ruling and sale of the company pending one has to ask. Should the government protect its investment and subsequently protect high tech information from one of our biggest rivals on the world stage?
Should the Federal Government help protect A123 and keep this technology in the United States? Please voice your opinion below.
Source: Fox News