The four companies – Johnson Controls-Saft Advanced Power Solutions LLC, LG Chem-Compact Power Inc., KD Advanced Battery Group LLC and A123 Systems Inc. – hope to secure a slice of the $2 billion pie that President Obama has set aside for advanced-battery research and development as part of his stimulus package.
If approved for stimulus funding, the four companies’ proposed projects would create 6,683 new jobs in Michigan, according to Granholm’s office.
“[This announcement] marks a defining moment for Michigan’s future as we see a new industry begin to take root and grow new jobs,” Granholm said. “Thanks to the most aggressive economic strategy of any state in the country, Michigan, the global center of automotive research and development, is positioned to lessen the nation’s dependence on foreign oil and become the advanced battery capital of the world.”
In January, Granholm signed legislation that provided up to $335 million in refundable tax credits to encourage companies to develop and manufacture advanced batteries and commercialize advanced-battery technologies in Michigan. Earlier this month, Granholm signed legislation adding $220 million in available tax credits.
“Thanks to a coordinated strategic plan driven by research and designed to leverage our strengths, we are now out in front of our competition to capture this market and create thousands of new jobs in Michigan,” Michigan Economic Development Corp. President and CEO Greg Main said.
Project details
The state provided the following details on the proposed projects:
- Milwaukee-based Johnson Controls-Saft, a joint venture between battery makers Johnson Controls and Saft, plans to invest $220 million in a new advanced-battery manufacturing facility to produce lithium-ion cells for automotive applications. The project is expected to create 498 new jobs. The Michigan Economic Growth Authority board approved a state tax credit valued at $48.5 million over 15 years and a battery cell state tax credit valued at $100 million over four years to help win the project over competing U.S. sites.
- Korean-based LG Chem, in partnership with its U.S. subsidiary, Compact Power, and General Motors, plans to invest $200 million as part of a proposed project to manufacture lithium-ion battery cells. The project is expected to create more than 300 new jobs. For the project, the Michigan Economic Growth Authority approved a state tax credit valued at $25.2 million over 15 years and a battery cell state tax credit valued at $100 million over four years.
- KD Advanced Battery Group, a joint venture of Dow Chemical, Kokam America Inc. and Townsend Ventures LLC formed to construct and operate a large-scale battery and cell manufacturing facility in Michigan, plans to invest $665 million in a new 800,000 square-foot battery manufacturing facility to produce its patented lithium-polymer battery technology for the electric and hybrid-electric vehicle markets. The project is expected to create 885 new jobs. For the project, the Michigan Economic Growth Authority board approved a state tax credit valued at $44.6 million over 15 years and a battery cell tax credit valued at $100 million over four years.
- A123Systems, a Watertown, Mass.-based designer, developer and manufacturer of rechargeable lithium-ion batteries and battery systems, plans to invest more than $600 million in initial coating, cell manufacturing and pack assembly. The planned project is expected to create more than 5,000 new jobs. For the project, the Michigan Economic Growth Authority approved a high-tech state tax credit valued at $25.2 million over 15 years and a battery cell state tax credit valued at $100 million over four years.
The Michigan Economic Growth Authority board approved the first battery incentive agreements with Ford and GM in February, totaling $215 million for pack engineering, integration and assembly, vehicle engineering and advanced-battery technologies.
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