WALTHAM, Mass. (AP) — Struggling electric vehicle battery maker A123 Systems says it lost $82.9 million in the second quarter. But it also reached a deal with a Chinese auto parts maker for an investment of up to $450 million.
A123 says the deal with Wanxiang Group Corp. will help fund its operations and boost its access to Chinese markets.
A123 has struggled amid a costly recall of defective battery packs. It warned in May that it continued to post significant losses and might not be able to stay in business unless it was able to secure more financing.
The Waltham, Mass.-based company's loss amounted to 56 cents per share. Revenue tumbled 53 percent to $17 million.
Analysts polled by FactSet expected a loss of 42 cents per share on $23 million in revenue.