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Work begins on $322m electric vehicle battery factory in Michigan

Vice President Joe Biden at the groundbreaking ceremony

Construction work officially began yesterday for a new manufacturing facility in Michigan, which will produce batteries for electric vehicles.

Vice President Joe Biden and Michigan Governor Jennifer Granholm attended a ground breaking ceremony to celebrate the start of work at the advanced battery facility in Midland.

The facility is being build by Dow Kokam, a joint venture between the Dow Chemical Company and battery specialist TK Advanced Battery.

When complete, the 800,000 square foot facility is set to build 1.2 billion watt-hours of lithium-ion batteries each year – enough batteries for 60,000 fully electric of hybrid vehicles a year.

The facility is being built in two phases, with the first $322 million phase supported by a $161 million federal grant from the Recovery Act.

Some 320 jobs will be created by the first phase, set to begin operations by 2012, while the completed plant is expected to require nearly 800 workers from 2015.

“History”

Speaking at yesterday’s ceremony, Dow Kokam chief executive officer Ravi Shanker said: “We’re making history today for Michigan and for the adoption of alternative energy by the automotive industry. In just nine short months, Dow Kokam has moved from formation to construction of a manufacturing facility to meet the needs of the next generation of the auto industry.”

The state of Michigan has provided more than $180 million in tax breaks for the Dow Kokam joint venture.

Governor Granholm said the investment meant new “green” jobs and the reshaping of Michigan into “the clean energy manufacturing capital of North America”.

She said: “Today’s groundbreaking marks a significant milestone in our strategy to diversify Michigan’s economy and grow our continuing leadership position in new energy sectors like advanced battery, solar and wind.”
Prismatic lithium-ion

According to Dow Kokam, its prismatic lithium-ion batteries will be able to store up to three times more energy than nickel metal hydride (NiMH) batteries being used in most hybrids today.

Andrew N. Liveris, Dow chairman and CEO, said: “We’re rebooting the American manufacturing base right here in Midland, Michigan, and redefining what it means to say ‘built in the USA’.”

“All of these green tech programs show the great results that can be achieved when government and industry work together toward a common goal.”