 Jennifer Granholm signs the $335M USD package into law. (Source: WWJ Photo/Ron Dewey)
Michigan is giving battery makers in state a big boost, in hopes of creating jobs and tempting more makers to move in state
Just a couple days after GM announced that it would be assembling its batteries in Michigan, the state has passed a major initiative to help GM and other players in the burgeoning electric car battery market. Michigan, home to the headquarters of GM, Ford, Chrysler, and numerous automotive suppliers, has been hit particularly hard by the slowing economy and was one of the first states to enter a recession.
While the automotive funding has shrunk, Michigan, under Governor Jennifer Granholm (D.), has aggressively tried to pursue to business, including alternative energy, biotech, movie business, and green tech. It has passed a number of tax incentives, which give companies in these fields tax breaks.
Battery makers have turned to the federal government for aid, with A123 asking Congress for a $1.8B USD federal loan. However, they may not have to wait, thanks to Michigan's $335M USD battery stimulus package. The program will refund much of battery makers’ taxes, significantly cutting their costs.
Governor Jennifer Granhom spoke about the new package, stating, "What we want to do is to have energy independence in America, and have control over our own ability to be free of Middle Eastern oil. That means that we want to manufacture the cells and do the assembly, and do the R&D (research and development) all here in Michigan."
She says the battery industry could grow 50,000 high paying jobs in Michigan, thanks to the bill.
Battery makers like A123, whose close partner Continental has a heavy presence in Michigan, and LG Chem, winner of the Volt contract and owner of Troy, Michigan-based Compact Power, are looking for ways to bring their battery production to the U.S. However, this will require the construction of new plants, a very expensive process.
Currently much battery cell production is done in Asia. A123 currently manufactures its batteries in China, while LG Chem produces its battery cells in South Korea. The new taxpayer-funded initiative should help grow both the manufacturing, corporate, and research and development sectors of the battery industry in Michigan.
“And I don't know why [Apple is] acting like it’s superior. I don't even get it. What are they trying to say?” -- Bill Gates on the Mac ads
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