Summary:

Lithium ion battery maker A123 Systems announced that it will replace some of the battery modules and packs that it’s sold that could contain defective prismatic cells, and that includes batteries for Fisker’s electric car the Karma.

Ray Lane's Fisker Karma

The hits for electric car battery makers just keep coming. On Monday morning lithium ion battery maker A123 Systems announced that it will replace some of the battery modules and packs that it’s sold that could contain defective prismatic cells. The move will cost the company $55 million, spread out over several quarters. A123’s shares dropped 11.47 percent to $1.51 in morning trading.

A123 said the potentially problematic cells, made at its Livonia, Michigan factory, could cause premature failure of a battery pack of module. Bloomberg reports that this is the flaw that shut down a Fisker electric Karma during testing by Consumer Reports. Back in December Fisker recalled 239 Karmas over faulty batteries made by A123 Systems.

Fisker tells Bloomberg that A123 is replacing battery packs that power the Karma. A123 is a shareholder in Fisker.

Separately Fisker is reportedly in the process of raising $100 million which will go toward improving the Karma and restarting work on Fisker’s second car the Nina. Fisker says that it will unveil a prototype of the Nina on April 3.

Here’s a video drive of the Fisker Karma we did earlier this year:

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