Obama announces battery grants: Big Three, Michigan, li-ion companies come out winners
by Sebastian Blanco on Aug 5th 2009 at 12:50PM 
At the closed and then re-openend Monaco Recreational Vehicle plant in Indiana today, President Obama will announce exactly how $2.4 billion in Recovery Act grant money will be spent on advanced battery technologies and on infrastructure for more electric vehicles. This is a bit more than the $2 billion originally set aside in February to fund advanced batteries in the Recovery Act. All told, 48 battery technology and electric vehicle projects will get some money. The big winners and familiar names are:
- Michigan and the Big Three: People who think that GM and Chrysler have received too much money already won't be pleased with the news that the Big Three and other Michigan-based groups will end up with half of the $2.4 billion. GM will get $240 million, Ford almost $100 million and Chrysler $70 million.
- Johnson Controls: $299.2 million to make "nickel-cobalt-metal battery cells and packs, as well as production of battery separators."
- A123: $249.1 million to make nano-iron phosphate cathode powder, electrode coatings, battery
cells and modules and assembling the complete battery pack systems. - Compact Power, Inc. (LG Chem, Ltd.): $151.4 million to produce the lithium-ion polymer battery cells for the
Chevy Volt. - Ener1: $118.5 million to produce their lithium-ion cells and packs.
[Source: Detroit News, White House]
Photo by marcn. Licensed under Creative Commons license 2.0.
PRESS RELEASE:
THE WHITE HOUSE
Office of the Press Secretary
August 5, 2009
President Obama Announces $2.4 Billion in Grants to Accelerate the Manufacturing and Deployment of the Next Generation of U.S. Batteries and Electric Vehicles
Recovery Act will fund 48 new advanced battery and electric drive components manufacturing and electric drive vehicle deployment projects in over 20 states
Elkhart, Indiana – Further accelerating the manufacturing and deployment of electric vehicles, batteries, and components here in America, and creating tens of thousands of new jobs, President Obama today announced 48 new advanced battery and electric drive projects that will receive $2.4 billion in funding under the American Recovery and Reinvestment Act. These projects, selected through a highly competitive process by the Department of Energy, will accelerate the development of U.S. manufacturing capacity for batteries and electric drive components as well as the deployment of electric drive vehicles, helping to establish American leadership in creating the next generation of advanced vehicles.
"If we want to reduce our dependence on oil, put Americans back to work and reassert our manufacturing sector as one of the greatest in the world, we must produce the advanced, efficient vehicles of the future," said President Obama.
"For our nation and our economy to recover, we must have a vision for what can be built here in the future – and then we need to invest in that vision," said Vice President Biden. "That's what we're doing today and that's what this Recovery Act is about."
The announcement marks the single largest investment in advanced battery technology for hybrid and electric-drive vehicles ever made. Industry officials expect that this $2.4 billion investment, coupled with another $2.4 billion in cost share from the award winners, will result directly in the creation tens of thousands of manufacturing jobs in the U.S. battery and auto industries.
The new awards cover the following areas:
- $1.5 billion in grants to U.S. based manufacturers to produce batteries and their components and to expand battery recycling capacity;
- $500 million in grants to U.S. based manufacturers to produce electric drive components for vehicles, including electric motors, power electronics, and other drive train components; and
- $400 million in grants to purchase thousands of plug-in hybrid and all-electric vehicles for test demonstrations in several dozen locations; to deploy them and evaluate their performance; to install electric charging infrastructure; and to provide education and workforce training to support the transition to advanced electric transportation systems.
Today, President Obama visited Navistar International Corporation, in Elkhart, Ind., to make the announcement. Navistar will receive a $39 million grant to manufacture electric trucks which the company reports will ultimately will create or save hundreds of jobs when full scale manufacturing at the site commences. Overall, seven projects in Indiana will receive grants totaling more than $400 million. The applications from the companies and from one university engaged in this technology research anticipate that these awards will create or save thousands of jobs.
Vice President Joe Biden and four Members of the Cabinet, also fanned out across the country to discuss the historic announcement.
Vice President Biden was in Detroit to announce over $1 billion in grants to companies and universities based in Michigan. Reflecting the state's leadership in clean energy manufacturing, Michigan companies and institutions are receiving the largest share of grant funding of any state. Two companies, A123 and Johnson Controls, will receive a total of approximately $550 million to establish a manufacturing base in the state for advanced batteries, and two others, Compact Power and Dow Kokam, will receive a total of over $300 million for manufacturing battery cells and materials. Large automakers based in Michigan, including GM, Chrysler, and Ford, will receive a total of more than $400 million to manufacture thousands of advanced hybrid and electric vehicles as well as batteries and electric drive components. And three educational institutions in Michigan, the University of Michigan, Wayne State University in Detroit, and Michigan Technological University in Houghton in the Upper Peninsula, will receive a total of more than $10 million for education and workforce training programs to train researchers, technicians and service providers, and to conduct consumer research to accelerate the transition towards advanced vehicles and batteries.
Energy Secretary Steven Chu, whose Department selected the 48 award winners, visited Celgard, in Charlotte, NC, to announce a $49 million grant for the company to expand its separator production capacity to serve the expected increased demand for lithium-ion batteries from manufacturing facilities in the U.S. Celgard will be expanding its manufacturing capacity in Charlotte, NC and nearby Aiken, SC, and the company expects the new separator production to come online in 2010. Celgard expects that approximately hundreds of jobs could be created, with the first of those jobs beginning as early as Fall 2009.
EPA Administrator Lisa Jackson was in St. Petersburg, FL, to announce a $95.5 million grant for Saft America, Inc. to construct a new plant in Jacksonville on the site of the former Cecil Field military base, to manufacture lithium-ion cells, modules and battery packs for military, industrial, and agricultural vehicles.
Deputy Secretary of the Department of Transportation John Porcari visited East Penn Manufacturing Co., in Lyon Station, Penn., to award the company a $32.5 million grant to increase production capacity for their valve regulated lead-acid batteries and the UltraBattery, a lead-acid battery combined with a carbon supercapacitor, for micro and mild hybrid applications. East Penn Manufacturing is a third-generation family business with over 63 years in battery manufacturing.
Commerce Secretary Gary Locke visited Kansas City, Missouri, to announce a $10 million grant for Smith Electric to build and deploy up to 100 electric vehicles, including vans, pickups, and their "Newton" brand medium duty trucks. In addition, Secretary Locke announced three other grants supporting manufacturing and educational programs in Missouri: a $30 million grant to Ford Motor Company supporting the manufacturing of plug-in hybrid electric vehicles in Kansas City and in Michigan; a $73 million grant to Chrysler, for the manufacturing of 220 plug-in hybrid and electric pickup trucks and minivans in St. Louis and in Michigan; and a $5 million grant to Missouri University of Science and Technology, in Rolla, Missouri, to fund educational and workforce training programs on advanced vehicles technologies.
For a full list of award winners, click HERE. For a map of their locations, click HERE.
Reader Comments (Page 1 of 3)
beavis1a03 12:59PM (8/05/2009)
This is another BS bailout for Michigan. Where are the small R&D companies throughout the rest of the US? Complete crap!
Reply
matt 1:15PM (8/05/2009)
I couldn't agree more... where's the money for Tesla who is already producing electric vehicles?????
paulwesterberg 1:27PM (8/05/2009)
Tesla already has a federal loan to help get the model S into production sooner.
Beavis what are your ideas to help stimulate the economy and encourage development of next generation zero emissions vehicles? Tax cuts for the rich? Drill Baby Drill? Obama has been criticized for relying too much on abstract ideas and "hope", now that he is doing something you criticize him for that. You are full of complaints but offer no solutions.
matt 1:48PM (8/05/2009)
Paul,
Ford also has already received millions of the ATVMP or whatever it's called... This however, is a gift and I'm sure Tesla would benefit from a few million given to them by the feds...
- mnx
Serge 2:32PM (8/05/2009)
@beavis. I suggest you review the recipient list -- plenty of companies outside of Michigan are on it.
alex 3:28PM (8/05/2009)
Why would Tesla get any money for batteries? If I recall correctly, they are just using off the shelf battery solutions. The Govt is funding companies who are developing new battery chemistries, not any one who simply uses batteries.
polo 5:41PM (8/05/2009)
"This is another BS bailout for Michigan."
$1.2Billion is a "bailout" for Michigan? Thats idiotic. Bush gave $700Billion to wallstreet firms and banks - THATS a BS bailout. This is an investment in green tech projects that will reduce our dependence on foreign oil. You republicans seem to be losing your ability to think critically.
tedd 2:28AM (8/06/2009)
I have a major problem with your recent DOE Grant to Smith Electric Trucks. Doesn't anyone do their homework over at DOE? You just awarded $10M of taxpayer money to Smith, a British Co, with a British CEO, selling a Czech built truck with a Korean drive motor getting $10M of taxpayer money. Meanwhile, where are the US jobs?????
notYou 1:16PM (8/05/2009)
From the White House (http://www.whitehouse.gov/blog/Facts-Are-Stubborn-Things/):
>>There is a lot of disinformation about health insurance reform out there, spanning from control of personal finances to end of life care. These rumors often travel just below the surface via chain emails or through casual conversation. Since we can’t keep track of all of them here at the White House, we’re asking for your help. If you get an email or see something on the web about health insurance reform that seems fishy, send it to flag@whitehouse.gov.
I'm presuming that applies to Recovery Act Initiatives as well.
Please watch your posts.
Reply
Tim 1:48PM (8/05/2009)
Don't worry, the Fed will just print more.
If we could just borrow and spend ourselves into prosperity, why do any of us have to work?
Progressives are the followers of Keynesian Voodoo debt-based economics.
Reply
Luis 2:41PM (8/05/2009)
We're cleaning up after W spent us into oblivion in Iraq. My you seem to forget how your conservative principles turned a humongous surplus into a deficit in the blink of an eye. This regardless of the dot.com bubble.
It takes massive spending to make up for the the lack of private spending. Once the economy picks up (thanks to that spending), the government can scale back. Healthcare reform is just one of the many ways the business climate will improve too, as a healthy population is a productive population.
Tim 2:55PM (8/05/2009)
Luis;
1) "W" is a NEOCON! He was NOT a true conservative and his war in Iraq was unconstitutional. He was a crappy president and a traitor to his oath of office.
2) Barry's war in Iran is ALSO unconstitutional. He is also a crappy president and a traitor to his oath of office. The only "change" there is MORE of the same screwing the taxpayers harder and faster.
3) DEBT is DEBT. People aren't spending because they are trying to get OUT of debt. Meanwhile, the Progressives are Digging a public DEBT-HOLE faster than ever before.
4) Gov't NEVER shrinks back. Entitlement programs are NEVER cancelled.
5) Gov't will run healthcare as well as they run everything else. Poorly!
paulwesterberg 4:01PM (8/05/2009)
@tim
Conservatives hate socialism and government programs, but once they hit retirement age you don't see them out in the streets burning their social security checks.
Btw the Social Security system is remarkably efficient, with overhead costs of only 1%.
Tim 4:15PM (8/05/2009)
Paul,
Why would ANYBODY burn their socialist-insecurity card when they were FORCED to pay into it for their entire lives?
By the way... IT'S A PYRAMID SCAM!!!
and... Social Security's financing is certainly in dire straights. The amount promised in benefits is far more than the system can afford to pay. In 2017--just 12 years from now--Social Security will pay out more money than it takes in. This difference will have to be made up by dipping into other government spending, raising taxes, or cutting benefits. Over the next 75 years, Social Security faces a $27 trillion shortfall.
The real crisis is that Social Security's high taxes prevent too many families from accumulating savings. Just as bad, the return that most workers get on the money they pay into Social Security is abysmal. Raising taxes to fund Social Security--which some propose as an alternative to real reform--would just make this savings crisis worse.
Workers would have been FAR better off if all that money went into THEIR OWN IRA account and earned compound interest.
Did ALL "progressives" fail basic math and simple economics?
oh, gov't schools?... that answers my question.
polo 6:33PM (8/05/2009)
"1) "W" is a NEOCON! He was NOT a true conservative and his war in Iraq was unconstitutional. He was a crappy president and a traitor to his oath of office."
ALL the elected conservatives fully backed and supported Bush, so if he is not a "true conservative" then neither is any of the rethuglicans in the House and Senate. They're the ones who actually wrote and approved his legislation and his agenda. You can't disown Bush without disowning the entire Rethuglican party.
"Barry's war in Iran is ALSO unconstitutional. He is also a crappy president and a traitor to his oath of office. The only "change" there is MORE of the same screwing the taxpayers harder and faster"
There is no war in Iran. If President Obama wasn't bringing "change" you wouldn't be on here showing us what a complete moron you are. Its obvious you are fuming at the fact he's our President and the Progressives control Congress.
Tim 9:35PM (8/05/2009)
Polo aka Anti-Tim said:
ALL the elected conservatives fully backed and supported Bush, so if he is not a "true conservative" then neither is any of the rethuglicans in the House and Senate.
Yep, this is the ONLY thing you seem to have a clear grasp of reality on.
I personally disagree with EVERYTHING the Republicrats are doing. My parents helped me see that it is WRONG to STEAL. It is wrong to steal from you neighbors and it is wrong to make you children pay for your thievery.
If you steal something and then give it away you are STILL a thief. This is the truth for a person and it is the truth for the State. Redistribution is immoral.
The Progressive NeoCons and the Democrat/Socialist/Progressive/Liberal (they keep changing their name once people see through their lies) think stealing is good as long as you give some of that money to charity.
EVERY nation that follows this social engineering redistribution trend ultimately collapses of its own peoples "entitlement" mindset because production stops. Why produce when the socialists will tax it away? If you don’t produce, the socialists will reward you with money stolen from the productive.
All incentive in “Progressivism” is toward failure! YOU sir, are a failure!
Vlad 1:47PM (8/05/2009)
Where is the mention of eTec (ECOtality's subsidiary) and them winning $100 Million (as much as Ford) in your article? They are the only charge infrastructure player to win, not Better Place or Coulomb or AeroVironment.
Reply
jpm 2:18PM (8/05/2009)
Great! Give all the money to the guys who failed the worst!! It's officially official, Obama sucks.
Reply
Serge 2:25PM (8/05/2009)
Which of the recipients failed and how?
notYou 4:05PM (8/05/2009)
@Serge: "Which of the recipients failed and how?"
What part of "bailout", "bankruptcy", or "insolvent" regarding GM and Chrysler didn't you hear?