Press Releases

Last week, Congressman Huizenga led a bipartisan group from the Michigan Delegation in addressing the sale of now bankrupt A123 Systems Inc. In a letter to Treasury Secretary Timothy Geithner, the delegation voiced serious concerns over an attempt by China’s Wanxiang Group Corporation to acquire A123. A123 has developed cutting-edge battery technology that is integrated into all facets of its own business, as well as defense, the electric grid, telecommunications, and automotive sectors. This raises concerns about the potential impact on U.S. national security by the transaction in question.

Additionally, A123 was awarded a significant federal battery manufacturing grant in 2009 under the American Recovery and Reinvestment Act and has also received investment incentives from the State of Michigan. In the letter, the delegation expresses deep concerns over the possibility that a foreign company might benefit from U.S. taxpayer assistance. As chairman of the Committee on Foreign Investment in the United States (CFIUS), Secretary Geithner is tasked to review transactions that could result in control of a U.S. business by a foreign person or entity in order to determine the effect of such transactions on U.S. national security.

"This proposed transaction raises significant national security and public policy considerations that, if not appropriately addressed, would impair U.S. national security and threaten America's innovation leadership and job creation," said Huizenga. "A123 has multiple contracts with the U.S. Department of Defense, several worth multi-millions of dollars. These contracts involve military vehicles, unmanned aerial and underwater vehicles, power grids, unmanned ground and portable power systems, high-energy lasers, and advanced armor. Should any adverse foreign agent working through Wanxiang gain access to these contracts, such access would be extremely detrimental to U.S. military operations."