Battery Maker Couldn’t Make a Profit

Last week, , on Snowdrift Road, closed its doors after giving employees one-day’s notice.

Yesterday, the company issued a statement through its California public relations firm.

"While International Battery has a unique product and green manufacturing process, it has not been able to reach profitability," the statement says."'Unfortunately, given the challenging market, it was unable to raise additional capital to fund its operations."

International Battery produces rechargeable lithium batteries with an environmentally friendly process, according to its web site. Its “water-based manufacturing process eliminates millions of gallons of NMP (a toxic solvent), while reducing operating and capital costs.”

But apparently the market for batteries is "extraordinarily challenging" and the company said it would now sell its equipment and technology to pay off creditors.

About 60 workers had been employed at the factory. It moved to 6845 Snowdrift Rd. in Upper Macungie from a New Jersey site in 2008, lured here by about $4 million in tax incentives and grants from the state.

And it seems the state wants its money back. The Morning Call reports that International Battery owes Pennsylvania nearly $3 million, and state lawyers are trying to recover it.

Sen. Lisa Boscola, D-Northampton told the newspaper, "This is a big deal. We want to get back as much of that money as we can, so we can give it to other companies and help them succeed."

• Here is the official statement for International Battery from its PR firm, Jennings and Associates Communications Inc.:

The market for energy storage, including lithium ion batteries, has been extraordinarily challenging.  While International Battery has a unique product and green manufacturing process, it has not been able to reach profitability.  Unfortunately, given the challenging market, it was unable to raise additional capital to fund its operations. While it is no longer manufacturing any products, it is focusing on selling it assets and technology. Moneys received on account of these assets will be used to pay creditors.