Ener1 Inc., a manufacturer of rechargeable car batteries that was using an Energy Department grant to build a factory in Indiana, has filed for Chapter 11 bankruptcy protection, making it yet another embarrassment for President Obama’s clean energy program, the Wall Street Journal reports.
Ener1 is the third Energy-Department-backed company to file for bankruptcy, after solar panel maker Solyndra and energy storage firm Beacon Power.
Ener1 Inc. said its filing will enable it to receive new capital and to continue operations.
An Energy Department spokeswoman called the bankruptcy filing unfortunate but said the new capital demonstrates that Ener1’s technology has merit.
The Journal says the company cited competition as a main source of its trouble. It also said it was struggling to gain a foothold in the market and was further hurt by the woes of its major customer, Norway-based Think Holdings AS, which manufactured small two-seat cars and had already declared bankruptcy twice, according to the Washington Post.
Competition from comparable cars made by Nissan and Chevrolet further hurt Think Holdings, which did not have the same name recognition, the Post adds.
Shareholders in the company, which was once traded on Nasdaq, will be wiped out by the bankruptcy, the Journal says.
The Washington Post notes the news comes one year after Vice President Biden visited Ener1’s battery plant in Indiana to highlight its progress with federal funds.
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To read the full article by The Washington Post cited in this story, click here