A123 Systems Inc. will receive a $25 million injection after signing a binding agreement with a Chinese conglomerate that could ultimately invest up to $465 million in the struggling Waltham battery maker and gain control of the firm, the companies said Thursday.
The agreement follows a memorandum of understanding unveiled last week between A123 and Wanxiang Group Corp. Much of the promised investment by the Chinese conglomerate, which is the largest auto parts company in China, must wait until the deal is approved by the US and Chinese governments, however.
If closed, the deal will provide A123 with much needed cash, and salvage hundreds of jobs in Massachusetts. The Waltham firm’s stock closed Thursday at 47 cents a share, far below its 2009 peak of more than $25 a share. Last week, the company reported a nearly $83 million loss for the second quarter.