Johnson Controls, Inc. has been awarded a $299 million grant by the U.S. Department of Energy under the American Recovery and Reinvestment Act (ARRA) to build domestic manufacturing capacity for advanced batteries for hybrid and electric vehicles. This award represents approximately half of the company's total planned investment of $600 million in domestic advanced battery manufacturing capacity and infrastructure development.
"This investment is an important step toward creating and building an industry in the United States that addresses market requirements and long-term opportunities for growth and new jobs in this country," says Alex Molinaroli, president of Power Solutions for Johnson Controls. "We have assembled a world-class team of suppliers and automotive manufacturers, and we believe this comprehensive approach will enable the United States to establish a domestic industry that is competitive, economically viable and sustainable."
In April, Johnson Controls and its joint venture partner Saft announced that Johnson Controls-Saft was awarded incentives for $148.5 million from the State of Michigan for the establishment of a U.S. manufacturing facility for lithium-ion cells and complete hybrid battery systems in Holland, Mich.. The Holland facility will serve the company's global customers, including Ford, for its first plug-in hybrid vehicle for 2012; and Azure Dynamics, for its 2010 launch of the next generation Balance™ Hybrid Electric commercial vehicle, Daimler AG and BMW.
Johnson Controls-Saft, which produces hybrid battery systems, earlier this year launched production at the world's first automotive lithium-ion cell manufacturing and battery assembly facility in Nersac, France. It is supplying advanced battery technology for the Mercedes S-class hybrid, on sale now, and the BMW 7 series ActiveHybrid available in early 2010.
"Three years ago, Michigan set the goal of becoming the advanced battery capital of the world," says Gov. Jennifer M. Granholm. "Thanks to our aggressive plan and great partners like Johnson Controls-Saft, we are well on our way. Today's announcement of funding for this critical endeavour means new jobs, economic development and opportunity for Michigan citizens."
Molinaroli adds, "We are very pleased to be selected for this grant and thank the U.S. Department of Energy for its efforts to support advanced energy storage manufacturing and the creation of high quality jobs. This funding, combined with our own investments and the support we've already received from the State of Michigan, will help to make this strategic new industry a reality."
By converting an existing Johnson Controls facility, the company expects to have the Holland, Mich. plant in operation before the end of 2010.
For more information, visit www.johnsoncontrols.com.
