Struggling battery maker A123 Systems Inc. - with nearly 800 employees in Michigan - said it reached a deal with a Chinese auto parts company for an investment of up to $450 million that could keep the company in business - and will likely see the Chinese firm acquire a majority stake in the battery maker.

Waltham, Mass.-based A123 reached a deal with Wanxiang Group Corp. that will allow the Chinese firm to acquire an 80 percent stake in A123.

A123 has won about $500 million in grants and other support from state and federal governments - including $238 million from the state of Michigan and a $249 million Energy Department grant as in August 2009 as part of the $800 billion stimulus.

A123 in April received a two-year extension on its deadline to spend the rest of the $249 million grant.

Rest here

Frilliant!  Good thing them A123 Execs got their cut for failure first.  And, thanks, Lansing!  What DC doesn't steal for China, you do.