Parent of Obama-backed battery maker goes bankrupt
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January 27 2012
Nothing to cheer about now: Electric car battery maker Ener1 filed for bankruptcy Thursday.[h/t to Gator] The parent company of an electric car battery maker that received a $118 million grant from the Obama administration filed for Chapter 11 bankruptcy protection on Thursday.
New York-based Ener1 said it has been affected by competition from China and other countries.
Ener1 subsidiary EnerDel received a $118 million stimulus grant from the Energy Department in 2009, and Vice President Joe Biden visited the company's new battery plant in Indiana last year.
Ener1 is the third company to seek bankruptcy protection after receiving assistance from the Energy Department under the economic stimulus law. California solar panel maker Solyndra Inc. and Beacon Power, a Massachusetts energy-storage firm, declared bankruptcy last year. Solyndra received a $528 million federal loan, while Beacon Power got a $43 million loan guarantee.
Solyndra, of Fremont, Calif., was the first renewable-energy company to receive a loan guarantee under the 2009 stimulus law, and the Obama administration frequently touted it as a model for its clean energy program.
Since then, the company's implosion and revelations that the administration hurried a review of the loan in time for a 2009 groundbreaking has become an embarrassment for President Barack Obama and a rallying cry for GOP critics of the administration's green energy program.
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Comments
Could it be that they knew at the start they wouldn't make it, that they were not viable nor ready for competition in the energy sector but would work perfectly to gut the economy?
They sure as hell aren't providing anything but a continuing drain on it. And lots of money for Obama supporters. Wonder how much is getting funneled back to him?
Chicago style economics at its finest...
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