Two Republican senators asked U.S. Treasury Secretary Timothy Geithner yesterday for a thorough review of a Chinese company's plan to acquire bankrupt battery maker A123, saying that military and taxpayer-funded technology must be protected, Reuters reported yesterday. China's Wanxiang Group Corp is currently locked in a battle with U.S.-based Johnson Controls Inc to buy A123, which makes lithium ion batteries for electric cars. A123 also had two contracts worth a total of more than $4 million to develop batteries for the Air Force, one of which is still ongoing, an Air Force official said. Senators John Thune (R-S.D.) and Chuck Grassley (R-Iowa) said the powerful Committee on Foreign Investment in the U.S. (CFIUS), led by Geithner, should review the transaction to make sure U.S. military and taxpayer interests in A123 are protected. To acquire A123, Wanxiang needs approval from the Chinese government and from CFIUS, a U.S. inter-agency panel that vets foreign deals for security concerns.
