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Dead Battery: $129 Million Federal Grant Short Circuits

Written by Gary North on November 1, 2012

A battery manufacturing company has declared bankruptcy, taking $249 million on Obamagrants with it.

It was clean energy: clean gone.

It was green energy: $129 million worth.

The company created 408 new jobs. Those jobs are now gone, as is the company. The company? A123.

I get it. “Pouring money down a rat hole is as easy as 1, 2, 3.”

Two Republican Senators say this: “A123 has been struggling for some time. Was the company struggling when the Energy Department decided to award it a federal grant? Did the Energy Department perform enough due diligence before making this award?”

This is not a bipartisan statement. Bipartisanship means “sit there and shut up.”

The company’s bankruptcy has spawned renewed scrutiny on the Energy Department after it backed several other businesses now involved in high-profile bankruptcies, including Solyndra LLC, the California-based solar panel manufacturer that went broke after burning through a half-billion dollars in federal money.

The Department of Energy allocated $249 million. Fortunately, the company only spent $129 million before it went bust.

Two years ago, the company issued this statement by the firm’s president:

“Over the next several years, we expect to create thousands of jobs in Greater Detroit and plan to continue our expansion in the area as we do our part in helping the U.S. emerge as a global leader in the production of advanced lithium ion batteries.”

Read more about this boondoggle by clicking the link.

Continue Reading on www.washingtontimes.com

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4 thoughts on “Dead Battery: $129 Million Federal Grant Short Circuits

  1. Chris Wilkes says:

    Green Energy what a great idea,now all we need are Non Gov't companies that don't drain the taxpayers pockets to run and then go bankrupt and put more people out of work!!

  2. Nobody ever considers that battery factories create greenhouse gases too.

  3. Bob Marshall says:

    Who was the "Father of green jobs" ? Karl Marx. Enough said.

  4. Ironically, I was just re-reading "Economics in One Lesson" by Hazlitt. He makes the wonderful point that by its very nature, government loans or grants move capital away from more successful businesses in favor of less successful businesses. Every time the government gives money to a business like this, it's giving the money to someone who couldn't get the money in the private market, i.e. some business that is less likely to succeed than the companies the private market is funding.