
It is increasingly clear that battery-powered electric vehicles both with and without range extenders are going to become the primary type of automobile in the future. One concern going forward is that the US could substitute foreign-petroleum dependence for foreign-battery dependence, as nearly all lithium-ion batteries are manufactured in Asia.
President-elect Obama has stated his interest in having 1 million plug-in cars on US roads by 2015. He is also preparing a massive stimulus plan which legislators are currently working on. Word its that the package will contain advanced battery production government loans.
Recently US-based lithium-ion battery maker EnerDel has announced it had applied for $480 million in ATVMIP loans, otherwise known as the retooloing loans, from which GM has also applied for its advanced vehicle development. Reports indicate GM has actually asked for $8 billion for the Volt and Cruze programs.
A123 Systems is the Massachusetts-based lithium ion battery company which has been running against LG Chem for the Volt battery contract. Although rumors suggest A123 might not have won this round, future partnerships with GM and many other automotive OEMs are likely for the company. An official Volt announcement on the battery contract is likely in the immediate future, and I suspect we’ll here about it at next week’s Auto Show (rumor).
Today A123 has broken its pre-IPO silence with a major announcement. The company has said it plans to invest $2.3 billion in building US battery factories, with the first one expected in southeast Michigan.
The company disclosed that they have applied for $1.84 billion in ATVMIP loans.
They claim this degree of production could make enough batteries to power 5 million hybrid cars by 2013, and create 14,000 jobs.
GM vice-chairman and Volt visionary Bob Lutz said “At GM, we see the development of vehicles powered by electricity as key to the transformation of our industry. And advanced battery technology, is at the heart of this transformation. A123′s proposal to manufacture advanced battery cells and packs right here in the United States is a positive development for our industry and the nation.”
Source (BusinessWire)












