WALTHAM, Mass. -- U.S. battery maker A123 Systems, which got a $249 million green technology grant from the U.S. government three years ago, said Wednesday a Chinese auto parts maker is looking to take an 80 percent stake in the faltering company.

China's Wanxiang Group Corp. plans to invest up to $450 million, A123 officials said. A123, which makes high-tech auto batteries for hybrid and electric vehicles, received the federal grant in 2009 under an Obama Administration initiative to encourage the development of green technology.

In 2010, Energy Secretary Steven Chu visited A123's plant in Romulus, Mich., where he praised the firm for being "a perfect example of what's possible when the private sector, government, and academia work together."

President Obama's push for clean-energy technology has come under fire from Republicans since the failure of two government-backed solar panel makers in the last two years.

Solyndra LLC, which filed for bankruptcy protection in September, 2011, left taxpayers on the hook for $535 million in loans. The company filed a Chapter 11 reorganization plan in July. Abound Solar filed for Chapter 7 liquidation in July.

The Obama Administration has said the country must win a clean-energy race with China through advances in areas such as battery technology and solar power.

The U.S. solar panel industry has blamed the failure of Solyndra and other firms on China flooding the world market with cheap panels.

Kevin See, an analyst with Lux Research, said that the Obama Administration underestimated the level of international competition and overestimated demand for hybrid and electric vehicles, which so far has been weak.

U.S. electric car battery maker Ener1 Inc., which received a $118.5 million government grant, filed for Chapter 11 bankruptcy in January.

David Vieau, chief executive officer of A123, said any deal with Wanxiang must be approved by U.S. and Chinese government regulators.

First Published August 9, 2012, 4:00 a.m.