A123 Systems To Build Domestic EV Battery Plants

A123 Systems announced earlier this week that it will build a domestic Li-ion battery production facility in southeastern Michigan. The Michigan plant will be the first of several facilities the company intends to open. In all, A123 Systems expects to spend $2.3 billion on the construction of as much as 7 million square feet of production space, and eventually to employ as many as 14,000 additional workers.

The company made the announcement as part of its bid to win up to $1.84 billion in loans through the US Department of Energy's Advanced Technology Vehicle Manufacturing Incentive Program. By 2013, A123 System hopes to increase production of automotive Li-ion batteries to 5 million for hybrid electric vehicles. Alternately, the company could produce as many as one-half million battery packs for all-electric vehicles.

A123 Systems is one of two companies being considered by GM to produce battery packs for the upcoming Volt vehicle program. A123 Systems says that it is working with seven different auto manufacturers to supply battery systems for HEVs, PHEVs and EVs. The company was founded in 2001 in Massachusetts with funding from General Electric, General Motors and other investors. The company estimates that the worldwide market for hybrid-electric and electric vehicle batteries will top $3 billion by 2013.

A123 Systems expects to take advantage of some of the $335 million in tax breaks the State of Michigan authorized in November for battery firms that build production facilities in the state. The company currently has offices in Ann Arbor, through its acquisition of a research firm there in 2006. A123 Systems has not said where it intends to build the facility, or where else it may locate production plants.

Source: A123 Systems
Photo Credit: Keith Syvinski