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With a Mostly Electric Auto Show, An Important Battery Update
Volt brings battery jobs to Michigan
At a press conference at the Detroit Auto Show, General Motors announced that it will make batteries for the Chevy Volt in Michigan. GM said it plans to open a battery-pack manufacturing facility somewhere in Southeast Michigan, though final negotiations remain with local and state officials. Given Michigan's recently annouced tax incentives for advanced battery manufacturing and research, this announcement could be a big win for Michigan's struggling manufacturing sector. In the meantime, LG Chem of South Korea will provide lithium-ion battery cells for the Volt, which will be built at its Troy-based subsidiary Compact Power Inc. has already announced a production facility for small engines in Flint, Michigan, where the Chevy Volt and Chevy Cruze engines will be made.
GM also announced a research collaboration with the University of Michigan. The company has partnered with Ann Marie Sastry (pictured below), an engineering professor at the U of M and CEO of startup Ann Arbor auto battery firm Sakti3. The collaboration between U of M and GM, called the Advanced Battery Coalition for Drivetrains, will involve establishing an advanced battery center, where the partners will train engineers to enhance their automotive lithium-ion battery skills. GM is investing $5 million in the partnership.
Battery start-up firm A123 also announced it had applied for a $1.8 billion Energy Department grant to build several battery factories in the United States -- including one in southeast Michigan. The company estimates that it could eventually employ 14,000 people and supply batteries for 5 million hybrid vehicles or 500,000 plug-in hybrids by 2013. A123 Systems says it will spend $2.3 billion on the factories.
Federal stimulus provides potential funding
President Obama’s proposed stimulus bill may contain important provisions for advanced automobiles and batteries. House Democrats recently announced an $825 billion stimulus bill that includes $3.5 billion for increasing U.S. battery research and speeding the introduction of more fuel-efficient vehicles.
The package includes $2 billion in loans and grants for advanced battery support and $200 million to encourage electric vehicle technologies. The bill also calls for $300 million to retrofit older diesel engines and replace some diesel vehicles, such as school buses, and use $400 million to help state and local governments buy more efficient alternative-fuel vehicles.
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GM and Chrysler Receive Needed Bridge Loans
Before the holidays and after a deadlocked Senate abandoned efforts to reach agreement, the Bush administration agreed to provide $17.4 billion in emergency aid for General Motors and Chrysler. Speaking from the White House, President Bush said, "By giving the auto companies a chance to restructure, we will shield the American people from a harsh economic blow at a vulnerable time."
The funds are being issued from the Troubled Asset Relief Program (TARP) fund, authorized to rescue the financial industry. The two automakers must produce a plan by mid-March for long-term profitability, including concessions from unions, creditors, suppliers and dealers.
Rick Wagoner, G.M.’s chairman, told reporters that the loans would allow the automakers to pay their bills and prevent a financial crisis from spreading through the industry’s suppliers and dealers.
Initially, the Bush administration advocated for the funds to be re-directed from the $25 billion Advanced Technology Vehicles Manufacturing Incentive Program, which was approved alongside new CAFE standards in the Energy Independence and Security Act of 2007. However, Congress narrowly rejected that plan, and the Department of Energy is currently in the process of using that funding to award grants and direct loans for projects that spur development and manufacture of higher-efficiency, alternative-fuel and low-emission vehicles and components.
The Energy Department has received more than 70 applications for the Advanced Technology Vehicles Manufacturing Incentive Program. Applicants include each of Detroit’s Big Three automakers, as well as Troy-based auto supplier Delphi Corp. and electric car startup Tesla Motors.
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Top photo credit: Jeff Kowalsky/European Pressphoto Agency
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