Some members of Congress have argued that the sale should be blocked because it would allow China to benefit from a $249 million grant from the Department of Energy. That grant, which was about half used by A123, was meant to promote the development of green energy technologies.
Blackburn's bill will be titled the Stop Mergers, Acquisitions, and Risky Takeovers Supplied by American Labor and Entrepreneurship (Smart Sale) Act. It would require companies that receive Department of Energy research grants to notify the government if they might be acquired by a "non-allied foreign nation."
It would also require the Department of Energy to report to Congress on whether the acquisition represents a threat to the United States, Blackburn said.