President and his staff hit the road to promote the over $2.4B USD in federal money they’re offering auto companies
U.S. President Barack Obama certainly isn’t setting modest goals when it comes to electric vehicles. The President is taking a gamble, pouring over $2.4B USD into the budding industry. A 100-mile range battery EV today costs around $33,000 USD to make, but Obama hopes to drop that cost to $16,000 by 2013 and $10,000 by 2015.
President Obama was visiting Michigan this week to check in on many pending battery projects that are receiving a piece of that $2.4B USD pie.
Among the events he attended was the groundbreaking ceremony in Holland, Michigan of a Compact Power Inc. plant that will be used to provide batteries for the Chevy Volt. Compact Power, owned by South Korea’s LG, announced news more big news at the ceremony — Ford picked it to produce batteries for the plug-in Ford Focus.
The plant will cost $303M USD to build, but the government will be chipping in $151M USD. The plant is expected to employ 450 workers by 2013 according to the Obama administration. The jobs are expected to pay $14, providing a decent standard of living to workers.
Obama also checked out Johnson Controls-Saft’s new $220M lithium-ion battery plant, also in Holland, Michigan. That plant may prove to be a key competitor to Compact Power in the near future, and is also receiving federal stimulus funding.
On Friday, Energy Secretary Steven Chu will visit Delphi Automotive in Kokomo, Indiana. Delphi is one of the auto industry’s top suppliers. The U.S. government is offering it $89M USD in grants to develop new components for electric vehicles.
Meanwhile, Ed Montgomery, executive director of the White House Council on Automotive Communities and Workers, will be visiting General Motor’s new plant in in White Marsh, Maryland. While GM will buy battery cells from suppliers like Compact Power, it will assemble its own battery packs and supporting systems in house at this new plant. GM is receiving $241M USD in federal funding for its EV efforts in total, including $106M USD towards this new plant.
Charlotte, North Carolina-based Celgard will be receiving a visit from Labor Secretary Hilda Solis. Celgard will receive $49M USD in stimulus money, which will allow it hire 100 employees, open a plant, and reach production.
While grants to promote the actual manufacturing of electric vehicles and their battery systems are one key aspect of Obama’s efforts, another major component is the creation of electrical vehicle charging stations. By spreading EV chargers out like gas stations, the range of EVs can effectively be extended.
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Source: dailytech.com
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- USA: Obama Says Aptera’s 3-Wheeler Is a Car
- Obama to Attend Groundbreaking for LG Chem Plant in U.S.
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