A123 Plans US $1.8B Lithium Ion Battery Production Facilities

January 09, 2009 | 5 Comments

A123Systems announced that it has submitted an application under the U.S. Department of Energy's Advanced Technology Vehicles Manufacturing Incentive Program to qualify for US $1.84 billion in direct loans to support the construction of new lithium ion battery manufacturing facilities in the United States, with the first construction location in southeast Michigan.

If A123’s application is approved by DOE, this program would enable the company to dramatically expand production capacity in the United States, with full production volumes designed to supply battery systems for five million hybrid vehicles or half a million plug-in electric vehicles per year by 2013.

"We’re entering an exciting new phase for the automotive industry where we increase the electrification of vehicles, reducing consumption of gasoline through advanced batteries. This new facility would greatly accelerate this change and help ensure that the American economy replaces its dependence on foreign oil with reliance on advanced, homegrown batteries,” said David Vieau, A123Systems president and CEO.

At full operation, A123 expects that the plants in Michigan and Massachusetts would occupy as much as 7 million square feet and create more than 14,000 jobs. These plants would produce battery cells and systems to meet the needs of A123’s broad automotive customer portfolio, which currently includes over seven vehicle manufacturers and 19 vehicle models ranging from hybrid electric vehicles to fully electric vehicles.

"The new Administration has a great opportunity to insure that a superior American technology originally developed by A123 out of MIT, leads the way to an electric transportation revolution. This is a way to produce tens of thousands of new jobs and millions of oil-free new cars right here in the United States. I look forward to the plant that will be based in Massachusetts as part of the fight we’ll lead to guarantee that the electric fuel of the future will be sourced right here at home instead of overseas," said U.S. Senator John Kerry (D-MA).

"I look forward to the plant that will be based in Massachusetts as part of the fight we'll lead to guarantee that the electric fuel of the future will be sourced right here at home instead of overseas." -- Senator John Kerry (D-MA)

5 Comments

andrew woodroffe
January 15, 2009

If grid connected, wind and solar do not need storage - the grid is the leveler.

Buses and garbage trucks ought to be priority as their stop start operation can enjoy the significant benefits of regeneratative breaking - check out the potential at http://www.hipadrive.com/oursystem.html. Small scooters ought to be next - cars for people who could and should walk or ride a bike - should not even be considered.

Mike Miller
January 14, 2009

I would imagine that we are in the infant stage of battery manufacturing and much more production is to come. I think Natalie is correct and we need to see the batteries in cars as multipurpose.

Nick Cook
January 14, 2009

Spot on Natalie

Natalie Villella
January 14, 2009

Image the Plug-in car as a base energy station in the senario where wind/solar/micro hydro is charging your car as your home base load battery bank. The average car:driver in the U.S. of A. is more than 1:1 and w/ and avg yearly milage of 13000 mi roughly figuring agragate speed of 25 mph roughly 520 hours of total use time per year is on the road (or 10 hours per week). The car has168 total hours per week of existance. 158 hours it can be used to "absorb" excess production from "off peak" production simply by mandating that the electric companies allow recharging on "off peak" hook-ups.
By "oversizing" batterybanks in cars one could even use them (in agregate) to smooth the power demand curve.
Thus the whole becomes more then the sum of the parts.

Mike Rycroft
January 13, 2009

Its a pity that the focus is entirely on batteries for hybrid vehicles , when there is a need for short term storage technology for both wind energy and solar PV systems, which would enable conversion from an intermittent source to a reliable source of dispatchable baseload power.