A123 Systems to Make Batteries for Navistar Electric Trucks

Mass High Tech

Battery technology company A123 Systems Inc. will be making its lithium ion battery systems for electric vehicles for truck company Navistar International Corp. under a new deal that will provide the batteries to a joint venture between Illinois-based Navistar and Japanese company Modec Inc.

Financial details of the deal were not disclosed, but the companies did state that the automotive battery for the joint venture — called the Navistar Modec Electric Vehicle Alliance — will be made in A123’s new facility in Livonia, Mich., planned to open this month.

Watertown’s A123 will create and manufacture the battery systems for Navistar’s EV, which will be a completely new truck design, instead of converting an existing, conventional fossil fuel powered truck. Alliance officials say the Navistar EV can possibly cut greenhouse gas emissions by as much as 10 tons annually, when compared to an equivalent diesel-powered truck. The new electric truck is scheduled for launch in mid-2010. Using A123’s battery pack, the truck will be able to run approximately 100 miles on electricity before needing to be recharged.

In August of 2009, A123 Systems landed $249.1 million in U.S. Department of Energy funding to construct the Michigan manufacturing plant to build and package car batteries for electric vehicles.  In September, the company went public in a $378 million IPO, at an offering price of $13.50 per share, well above the initial projection of a range of $9 to $9.50.  In December, A123 finalized a deal with the U.S. Department of Energy for another $250 million, this time a construction loan, for the new plant.

With nearly 1,700 employees, A123 Systems lost $22.8 million on the third quarter of 2009, on revenue of $23.6 million.

Toda America One Step Closer to Battery Plant in Battle Creek

mLive

Toda America announced the conclusion of a $35 million award contract with U.S. Department of Energy, half of its total $70 million planned investment in the proposed Battle Creek, Michigan, manufacturing plant.

Toda America plans to build its manufacturing plant of cathode materials for lithium-ion batteries in Battle Creek, Michigan, as soon as the site remediation work is completed and regulatory approvals are obtained in the next few months.  Toda expects to complete Phase 1 and plans to start its operation in February 2011, bringing up to 148 new jobs to the area.

The company has been working with the state of Michigan and the city of Battle Creek to finalize various agreements and financial incentives for the manufacturing plant in Battle Creek based on the planned job creation and capital investment.

The project is expected to add 50-60 direct new jobs, and up to a total 148 new jobs including 91 indirect jobs according to the MEDC.

Dow Starts Construction Of Midland Battery Factory

From M-Live

The Dow Chemical Co. is starting preliminary construction in Midland County for a factory that will develop and manufacture advanced batteries for the automobile industry.

The 800,000-square-foot factory is planned for a location in Midland at the corner of Saginaw Street and Bay City Road.

The estimated $665 million project is a joint venture between Dow and a battery maker named Townsend Kokam.

Work is under way now to reroute underground power, fiber optics and steam utilities that are currently located within the planned battery facility site, Dow Chemical announced Wednesday.

Workers also will relocate the fence line since the battery plant site is located outside Dow’s current boundaries.

Johnston Contracting of Midland and Alloy Construction Service Inc., 401 Balsam in Carrollton were awarded work for the utility relocation. Dow expects to award further construction contracts in spring 2010.

The Dow Kokam venture has not begun hiring the estimated 800 people it needs to run the factory.

Battery Manufacturing Plant to Open In Holland

Story from BizJournals.com

Johnson Controls Inc. announced plans Tuesday to build its first U.S. manufacturing facility for lithium-ion hybrid batteries.

Subject to final state and local incentives, the company, through a joint venture with France-based Saft SA, will use an existing Johnson Controls facility in Holland, Mich.

“Battery technology is strategically important to the future of the U.S. automotive industry and the economy at large,” said Alex Molinaroli, president of the power solutions business for Glendale-based Johnson Controls.

The plant will have about 500 employees.

Johnson Controls-Saft is a global provider of hybrid battery systems. The company opened the world’s first lithium-ion manufacturing facility for hybrid electric vehicles in 2008 in Nersac, France, where it is currently in production for the Mercedes S-Class hybrid, which will be available to consumers later this year.

Johnson Controls-Saft also will supply the lithium-ion hybrid battery system for the BMW 7 Series ActiveHybrid available in 2010, Azure Dynamic’s Balance hybrid electric for commercial vehicles available in 2010, and Ford’s first plug-in hybrid electric vehicle available in 2012.

“This Michigan facility will allow us to serve our strategic global customers and specifically the production contracts we have with Ford and Azure Dynamics. It will also allow us to serve other important customers as the hybrid and electric vehicle industry continues to gain a foothold in the United States,” said Mary Ann Wright, who leads the Johnson Controls-Saft joint venture and is vice president and general manager of Johnson Controls’ hybrid business.

The cost to renovate the Holland, Mich., facility for lithium-ion automotive battery production is approximately $220 million. It will have an initial capacity of 15 million lithium-ion cells.

Johnson Controls-Saft will receive a combination of tax credits and incentives from the state of Michigan totaling $148.5 million as part of the state’s strategy to become the “advanced battery capital of the world.” Michigan Gov. Jennifer Granholm announced that the Michigan Economic Growth Authority has awarded Johnson Controls-Saft a package in support of lithium-ion battery cell manufacturing.

“Johnson Controls is an important Michigan employer with a successful long-term relationship with the automakers,” Granholm said in a statement.

Johnson Controls also plans to apply for a grant through the federal American Recovery and Reinvestment Act.