 Joe Biden is in Michigan today, reportedly to announce the first round of $2B in battery grants. (Source: The Weekly Standard)
Grants bring good news to state's troubled economy
Michigan is among the states that has
been hit hardest by the recession. The government went to
extreme measures to keep the state's economy from collapsing,
including assuming majority ownership
of GM and propping
up Chrysler through bankruptcy. Now the federal government
is preparing to reach deeper into its pockets to help the state out
even more.
Vice President Joe Biden is in
Michigan today at the NextEnergy Center in Detroit. He is
reportedly going to announce the first round of $2B USD in Department
of Energy battery grants. The grants should boost the state's
economy and help develop better electric vehicles, currently favored
as the future of the car industry by the domestic automakers.
The
federal government is also separately loaning money to battery
manufacturers under the $25 billion Advanced Technology Vehicle
Manufacturing Incentive Program (ATVM). Among the battery
manufacturers that applied for that loan are A123 Systems, EnerDel,
and Compact Power. Thus far Ford,
Nissan, and Tesla Motors received ATVM loans. It is unknown who
the grants will go to, but A123 Systems, EnerDel, and Compact Power
seem like leading candidates.
Ed DeSeve, the president's
special advisor on the stimulus program, had stated about on July 21,
"I think you'll see over the next week or so ... some
industrialization focus, for example, on the battery grants that are
coming. It makes sense to put those in places where there is
productive working capacity -- people who can do the jobs. There are
plants where the jobs can exist, and I think you are going to start
to see more and more of that over time."
The ATVM loans
must be repaid eventually by automakers and battery makers.
However, the DoE grants do not have to be repaid. Michigan has
also offered battery makers some big
tax cuts in hopes of luring business into the state.
A
limited amount of tickets to Mr. Biden's appearance have been offered
to the public on a first-come-first-serve basis.
"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton
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