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  • Michigan to Become Battery Capital

    Sep 16
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    Michigan's march toward a robust advanced battery industry continued this morning, as Massachusetts-based A123 Systems announced the grand opening of its new 291,000 square-foot facility in Livonia.

    The company already has hired 300 workers for the lithium ion automotive battery production facility, which is believed to be the largest of its type in North America, and is expected to add several thousand jobs in coming years as it opens a second facility in Romulus.

    "That's just the direct hires," CEO Dave Vieau told host Paul W. Smith on WJR-AM 760. "(That figure) doesn't include the jobs in support and services that are related to it. I think it'll be an impact of over 10,000 jobs in the area."

    The DOE last year awarded A123 with a $243 million grant to increase manufacturing capacity, and Michigan wooed the company with a tax credit worth $25.2 million over 15 years and refundable battery cell production credits worth $100 million over four years. Gov. Jennifer Granholm, U.S. Energy Secretary Steven Chu and several members of Congress attended the opening in Livonia.

    "I would say the state was very aggressive," Vieau said. "I don't think people should trivialize the role that the governor and legislature played in this thing. We looked around. We looked at states all over the country, and we ended up landing it here. They were very aggressive, very determined and did an excellent job of making this happen."

    A123 has positioned itself as a leading supplier of lithium ion batteries for trucks and buses, and the company hopes a Michigan presence will allow it to continue growth in the passenger car industry. Chrysler last year announced A123 would supply cells and battery systems for its upcoming electric offerings, and Vieau said GM has stated openly that they'd like to work together in the future.

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