As a company A123 is leading the way in American battery manufacturing as well as research and development. They are also looking to make their batteries right here in the good ‘ole US of A.
Earlier this week, Chrysler confirmed it would be using battery packs supplied by A123 to power it’s ENVI program of cars. To make this deal work , A123 will build an assembly plant somewhere near Detroit Michigan. The proposed plant would eventually employ 14,000 people and have the capacity to supply 5 million hybrid vehicles or half a million battery electric vehicles.
A plant of that size won’t be cheap, and A123 is reportedly planning to launch large scale manufacturing in more than one location. To help defray a sizable portion of the $2.4 billion it will cost to get these plants built, the battery maker has applied for $1.84 billion from the Department of Energy. A123 confirmed that at least one plant will be built in Michigan regardless of whether or not its loan application is approved. Currently, A123 has plants in Massachusetts, South Korea and China.
Of course A123 will also take advantage of monies and tax credits offered by the state of Michigan, but one wonders why building a new facility is preferred over taking an existing location that might be lying fallow in the state.
Update
A123 Systems now has added an additional $69 million in new investment money to their bank accounts. General Electric put up $15 million, bringing its ownership in the advanced battery start up company to over 10 percent. The news is significant since Chrysler announced that A123 Systems would be its primary supplier of lithium ion batteries for electric vehicles. SAIC of China also awarded the company a large contract to supply batteries for their EV’s.
A123 Systems is still waiting for an answer from feds on how much, if any, money it will get through the ATVM loan program and stimulus funds for green technology projects. In the meantime, A123 is moving ahead with plans to build a new factory in Michigan that will produce automotive lithium ion cells and modules.
“build” a factory? how about refurbbing instead? closed or empty factories can now be measured in acreage.