Michigan Governor Jennifer Granholm, in January, signing new legislation authorizing million of dollars in tax credits to draw advanced battery production facilities to the state.
Four new battery manufacturing ventures, worth an estimated $1.7 billion, will be launched in Michigan, state officials have announced. The news underscores Michigan’s efforts to transform itself into the center of a new, green auto industry.
A total of 6,683 jobs will be created, Governor Jennifer Granholm revealed, confirming a report that appeared, early today in TheDetroitBureau.com. That’s a significant development in a state that has been battered by cutbacks at the Big Three and traditional automotive suppliers, though even when fully implemented, it will leave Michigan with one of the worst unemployment rates in the nation.
“Today marks a defining moment for Michigan’s future as we see a new industry begin to take root and grow new jobs,” Granholm declared during a news conference announcing the new ventures – and the awarding of more than $500 million in grants to encourage the battery manufacturing projects.
The four projects include:
- Johnson Controls-Saft Advanced Power Solutions, or JCS, which will invest $220 million in a battery manufacturing facility to supply LIon technology to Ford Motor Co.;
- LG Chem-Compact Power, a U.S./Korean partnership, which will produce batteries for the Chevrolet Volt plug-in hybrid-electric vehicle. The project will cost $200 million;
- KD Advanced Battery Group, a joint venture of The Dow Chemical Company, Kokam America Inc., and Townsend Ventures LLC, which will invest $665 million in a new Lithium Polymer battery and cell manufacturing facility for the electric and hybrid electric vehicle markets;
- A123 Systems, which plans to invest $600 million for battery development and manufacturing to provide LIon technology to Chrysler for the automaker’s ENVI product line, which will include plug-ins and battery-electric vehicles.”Today is truly a milestone.” said David Vieau, A123Systems’ president and chief executive officer.
As TheDetroitBureau.com reports, A123 has sought additional financial aid from industrial giant General Electric to set up the venture. To find out more, click here.
The various ventures could still qualify for additional federal aid, as part of a new program, announced last month by President Barack last month, to encourage the development of high-tech battery research and manufacturing facilities in the United States. Currently, there is only one large-scale factory for the production of Lithium-Ion, or LIon, batteries in the U.S., and there has been growing concern that the dominance of Japan, China and South Korea, could prove a long-term strategic problem for America.