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At the closed and then re-openend Monaco Recreational Vehicle plant in Indiana today, President Obama will announce exactly how $2.4 billion in Recovery Act grant money will be spent on advanced battery technologies and on infrastructure for more electric vehicles. This is a bit more than the $2 billion originally set aside in February to fund advanced batteries in the Recovery Act. All told, 48 battery technology and electric vehicle projects will get some money. The big winners and familiar names are:
  • Michigan and the Big Three: People who think that GM and Chrysler have received too much money already won't be pleased with the news that the Big Three and other Michigan-based groups will end up with half of the $2.4 billion. GM will get $240 million, Ford almost $100 million and Chrysler $70 million.
  • Johnson Controls: $299.2 million to make "nickel-cobalt-metal battery cells and packs, as well as production of battery separators."
  • A123: $249.1 million to make nano-iron phosphate cathode powder, electrode coatings, battery
    cells and modules and assembling the complete battery pack systems.
  • Compact Power, Inc. (LG Chem, Ltd.): $151.4 million to produce the lithium-ion polymer battery cells for the
    Chevy Volt.
  • Ener1: $118.5 million to produce their lithium-ion cells and packs.
Many universities and schools were also given money to set up educational programs in the EV arts. As we mentioned yesterday, these are grants, not loans, and so do not need to be repaid. The White House has stipulated that 70 percent of the money must be spent by next year. See all of the winners, the amounts they received and what the money is being spent on in the gallery below of download the PDF.

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[Source: Detroit News, White House]
Photo by marcn. Licensed under Creative Commons license 2.0.




PRESS RELEASE:

THE WHITE HOUSE


Office of the Press Secretary
August 5, 2009

President Obama Announces $2.4 Billion in Grants to Accelerate the Manufacturing and Deployment of the Next Generation of U.S. Batteries and Electric Vehicles

Recovery Act will fund 48 new advanced battery and electric drive components manufacturing and electric drive vehicle deployment projects in over 20 states

Elkhart, Indiana – Further accelerating the manufacturing and deployment of electric vehicles, batteries, and components here in America, and creating tens of thousands of new jobs, President Obama today announced 48 new advanced battery and electric drive projects that will receive $2.4 billion in funding under the American Recovery and Reinvestment Act. These projects, selected through a highly competitive process by the Department of Energy, will accelerate the development of U.S. manufacturing capacity for batteries and electric drive components as well as the deployment of electric drive vehicles, helping to establish American leadership in creating the next generation of advanced vehicles.

"If we want to reduce our dependence on oil, put Americans back to work and reassert our manufacturing sector as one of the greatest in the world, we must produce the advanced, efficient vehicles of the future," said President Obama.
"For our nation and our economy to recover, we must have a vision for what can be built here in the future – and then we need to invest in that vision," said Vice President Biden. "That's what we're doing today and that's what this Recovery Act is about."
The announcement marks the single largest investment in advanced battery technology for hybrid and electric-drive vehicles ever made. Industry officials expect that this $2.4 billion investment, coupled with another $2.4 billion in cost share from the award winners, will result directly in the creation tens of thousands of manufacturing jobs in the U.S. battery and auto industries.
The new awards cover the following areas:

  • $1.5 billion in grants to U.S. based manufacturers to produce batteries and their components and to expand battery recycling capacity;
  • $500 million in grants to U.S. based manufacturers to produce electric drive components for vehicles, including electric motors, power electronics, and other drive train components; and
  • $400 million in grants to purchase thousands of plug-in hybrid and all-electric vehicles for test demonstrations in several dozen locations; to deploy them and evaluate their performance; to install electric charging infrastructure; and to provide education and workforce training to support the transition to advanced electric transportation systems.

Today, President Obama visited Navistar International Corporation, in Elkhart, Ind., to make the announcement. Navistar will receive a $39 million grant to manufacture electric trucks which the company reports will ultimately will create or save hundreds of jobs when full scale manufacturing at the site commences. Overall, seven projects in Indiana will receive grants totaling more than $400 million. The applications from the companies and from one university engaged in this technology research anticipate that these awards will create or save thousands of jobs.

Vice President Joe Biden and four Members of the Cabinet, also fanned out across the country to discuss the historic announcement.

Vice President Biden was in Detroit to announce over $1 billion in grants to companies and universities based in Michigan. Reflecting the state's leadership in clean energy manufacturing, Michigan companies and institutions are receiving the largest share of grant funding of any state. Two companies, A123 and Johnson Controls, will receive a total of approximately $550 million to establish a manufacturing base in the state for advanced batteries, and two others, Compact Power and Dow Kokam, will receive a total of over $300 million for manufacturing battery cells and materials. Large automakers based in Michigan, including GM, Chrysler, and Ford, will receive a total of more than $400 million to manufacture thousands of advanced hybrid and electric vehicles as well as batteries and electric drive components. And three educational institutions in Michigan, the University of Michigan, Wayne State University in Detroit, and Michigan Technological University in Houghton in the Upper Peninsula, will receive a total of more than $10 million for education and workforce training programs to train researchers, technicians and service providers, and to conduct consumer research to accelerate the transition towards advanced vehicles and batteries.

Energy Secretary Steven Chu, whose Department selected the 48 award winners, visited Celgard, in Charlotte, NC, to announce a $49 million grant for the company to expand its separator production capacity to serve the expected increased demand for lithium-ion batteries from manufacturing facilities in the U.S. Celgard will be expanding its manufacturing capacity in Charlotte, NC and nearby Aiken, SC, and the company expects the new separator production to come online in 2010. Celgard expects that approximately hundreds of jobs could be created, with the first of those jobs beginning as early as Fall 2009.

EPA Administrator Lisa Jackson was in St. Petersburg, FL, to announce a $95.5 million grant for Saft America, Inc. to construct a new plant in Jacksonville on the site of the former Cecil Field military base, to manufacture lithium-ion cells, modules and battery packs for military, industrial, and agricultural vehicles.

Deputy Secretary of the Department of Transportation John Porcari visited East Penn Manufacturing Co., in Lyon Station, Penn., to award the company a $32.5 million grant to increase production capacity for their valve regulated lead-acid batteries and the UltraBattery, a lead-acid battery combined with a carbon supercapacitor, for micro and mild hybrid applications. East Penn Manufacturing is a third-generation family business with over 63 years in battery manufacturing.

Commerce Secretary Gary Locke visited Kansas City, Missouri, to announce a $10 million grant for Smith Electric to build and deploy up to 100 electric vehicles, including vans, pickups, and their "Newton" brand medium duty trucks. In addition, Secretary Locke announced three other grants supporting manufacturing and educational programs in Missouri: a $30 million grant to Ford Motor Company supporting the manufacturing of plug-in hybrid electric vehicles in Kansas City and in Michigan; a $73 million grant to Chrysler, for the manufacturing of 220 plug-in hybrid and electric pickup trucks and minivans in St. Louis and in Michigan; and a $5 million grant to Missouri University of Science and Technology, in Rolla, Missouri, to fund educational and workforce training programs on advanced vehicles technologies.

For a full list of award winners, click HERE. For a map of their locations, click HERE.




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  • 39 Comments
      • 5 Months Ago
      From the White House ( http://www.whitehouse.gov/blog/Facts-Are-Stubborn-Things/):

      >>There is a lot of disinformation about health insurance reform out there, spanning from control of personal finances to end of life care. These rumors often travel just below the surface via chain emails or through casual conversation. Since we can’t keep track of all of them here at the White House, we’re asking for your help. If you get an email or see something on the web about health insurance reform that seems fishy, send it to flag@whitehouse.gov.

      I'm presuming that applies to Recovery Act Initiatives as well.

      Please watch your posts.


      • 5 Months Ago
      This forum is making my head spin... a couple of points to make:

      @Tim: Look, I consider myself a Libertarian, I've voted for the LP candidate for president every 4 years since 1992, when I first became eligibile to vote. I'm not too big on government spending. I can honestly say that even as a Libertarian, I think you need to reconsider the way you post ideas. IE: You are not convincing anyone to challenge their current thinking and in fact are more likely turning more people against Libertarianism than towards it. Your posts tend to be too strong on attacks and too weak on "food for thought" If you are posting to try to convince people, you have failed. "If you always do what you've always done, you'll always get what you always got." The choice is yours, but I suggest you rethink your approach.

      @Luis: "We're cleaning up after W spent us into oblivion in Iraq. My you seem to forget how your conservative principles turned a humongous surplus into a deficit in the blink of an eye" Tim considers himself a Libertarian... GW Bush was not and never will be a Libertarian. GW Bush did in fact waste a ton of money in Iraq, and with a decrease in taxes WITHOUT a corresponding decrease in government spending. A true Libertarian would have decreased both. The Libertarian party was vocally against the invasion of Iraq. The most Libertarian congressman is Ron Paul, and he voted against giving Bush a blank check on war in Iraq. GW Bush also turned a budget surplus left to him from the Clinton Administration into a huge budget deficit. The Libertarian candidate for president in 2000 was Harry Browne, and in 2004 was Michael Badninik. Don't confuse Libertarians with Conservatives... they are in no way the same thing.

      @polo: Clinton did a great job with reducing the national debt... He was the only president within the last 50 years in which the national debt started to be reduced during his administration. Some of the credit for this also belongs to the much-reviled but deserving of credit in this case, Newt Gingrich and the Republican "Contract with America". You stated however:
      "What "spending binge"? You could include Obama's Stimulus bill AND the $1Trillion Healthcare bill and that would be only 2/3rds what Bush wasted on the Iraq war. Oh, and if nothing is done about healthcare we WILL be bankrupt by 2020, when healthcare is expected to consume 20% of the GDP. You are ignoring the fact that these deficits are hold-overs from the Bush admin (record tax cuts and record spending increases will do that).:
      I hate to break it to you, but although the Bush administration led to the largest increase in the deficit of any presidency up until now, Obama is well on his way to SHATTERING Bush's record deficits. One could argue (fairly I might add) that Obama is spending money on more worthwhile causes, but the incovienient fact is that although Bush brought us to the edge of bankruptcy as a nation, Obama is looking like he might be the one to push us over into it. Even if Obama's spending is (your words, emphasis mine) "ONLY 2/3rds what bush wasted on the Iraq war", the fact is that money was spent over a period of 6 years of the Bush administration, and Obama has been in office for what... 200 days or so? This is not a sustainable path.

      None of this has much to do with the topic at hand however, which is 2 Billion to battery/EV production. I apologize for the thread takeover, so my relevant comment is, although I'd personally much rather spend 2 BIllion towards EV research than a lot of other things, I wish Obama would have balanced out this spending by finding 2 Billion, or preferably more, somewhere in the bloated federal budget to balance out this new spending. Maybe 2 Billion less in subsidies for Oil and Gas Exploration or Drilling, or Coal Mining, or, or, or.....
        • 5 Months Ago
        1) Bush approved the first 750 billion
        2) He started two wars that are still running up cost
        3) He expanded Medicare which is eating us alive financially
        4) He took a surplus and flipped it into a deficit
        5) Under His watch our financial system almost collapsed

        This man is trying to reverse thing right now and so since spending is need to shore up our financial system he is then focusing it on thing that will be an investment in the future. He said that after this initial spending we will be aggressive with reducing the deficit but he has to fix what was broken for eight years. Look at all the indicators and he is moving us in the right direction.


      • 5 Months Ago
      You people are so limited....the money has already been allocated this is not new money this is the same money that was already approved it is just being appropriated. Meaning it is being issued out. You all keep acting like this is in addition to instead of the same 750 that was approved. Stop hyping yourself up and get riled we are investing in the future.

      Think about all of those students that will come out of college with specific education in this kind of new medium and will be to contribute 1) more tax money because of higher income and 2) help expand the industry.
      • 5 Months Ago
      Don't worry, the Fed will just print more.

      If we could just borrow and spend ourselves into prosperity, why do any of us have to work?

      Progressives are the followers of Keynesian Voodoo debt-based economics.
        • 5 Months Ago
        Luis;

        1) "W" is a NEOCON! He was NOT a true conservative and his war in Iraq was unconstitutional. He was a crappy president and a traitor to his oath of office.
        2) Barry's war in Iran is ALSO unconstitutional. He is also a crappy president and a traitor to his oath of office. The only "change" there is MORE of the same screwing the taxpayers harder and faster.
        3) DEBT is DEBT. People aren't spending because they are trying to get OUT of debt. Meanwhile, the Progressives are Digging a public DEBT-HOLE faster than ever before.
        4) Gov't NEVER shrinks back. Entitlement programs are NEVER cancelled.
        5) Gov't will run healthcare as well as they run everything else. Poorly!
        • 5 Months Ago
        "1) "W" is a NEOCON! He was NOT a true conservative and his war in Iraq was unconstitutional. He was a crappy president and a traitor to his oath of office."

        ALL the elected conservatives fully backed and supported Bush, so if he is not a "true conservative" then neither is any of the rethuglicans in the House and Senate. They're the ones who actually wrote and approved his legislation and his agenda. You can't disown Bush without disowning the entire Rethuglican party.


        "Barry's war in Iran is ALSO unconstitutional. He is also a crappy president and a traitor to his oath of office. The only "change" there is MORE of the same screwing the taxpayers harder and faster"

        There is no war in Iran. If President Obama wasn't bringing "change" you wouldn't be on here showing us what a complete moron you are. Its obvious you are fuming at the fact he's our President and the Progressives control Congress.
        • 5 Months Ago
        Paul,

        Why would ANYBODY burn their socialist-insecurity card when they were FORCED to pay into it for their entire lives?

        By the way... IT'S A PYRAMID SCAM!!!

        and... Social Security's financing is certainly in dire straights. The amount promised in benefits is far more than the system can afford to pay. In 2017--just 12 years from now--Social Security will pay out more money than it takes in. This difference will have to be made up by dipping into other government spending, raising taxes, or cutting benefits. Over the next 75 years, Social Security faces a $27 trillion shortfall.

        The real crisis is that Social Security's high taxes prevent too many families from accumulating savings. Just as bad, the return that most workers get on the money they pay into Social Security is abysmal. Raising taxes to fund Social Security--which some propose as an alternative to real reform--would just make this savings crisis worse.

        Workers would have been FAR better off if all that money went into THEIR OWN IRA account and earned compound interest.

        Did ALL "progressives" fail basic math and simple economics?

        oh, gov't schools?... that answers my question.
        • 5 Months Ago
        @tim

        Conservatives hate socialism and government programs, but once they hit retirement age you don't see them out in the streets burning their social security checks.

        Btw the Social Security system is remarkably efficient, with overhead costs of only 1%.
        • 5 Months Ago
        We're cleaning up after W spent us into oblivion in Iraq. My you seem to forget how your conservative principles turned a humongous surplus into a deficit in the blink of an eye. This regardless of the dot.com bubble.

        It takes massive spending to make up for the the lack of private spending. Once the economy picks up (thanks to that spending), the government can scale back. Healthcare reform is just one of the many ways the business climate will improve too, as a healthy population is a productive population.
        • 5 Months Ago
        Polo aka Anti-Tim said:

        ALL the elected conservatives fully backed and supported Bush, so if he is not a "true conservative" then neither is any of the rethuglicans in the House and Senate.

        Yep, this is the ONLY thing you seem to have a clear grasp of reality on.

        I personally disagree with EVERYTHING the Republicrats are doing. My parents helped me see that it is WRONG to STEAL. It is wrong to steal from you neighbors and it is wrong to make you children pay for your thievery.

        If you steal something and then give it away you are STILL a thief. This is the truth for a person and it is the truth for the State. Redistribution is immoral.

        The Progressive NeoCons and the Democrat/Socialist/Progressive/Liberal (they keep changing their name once people see through their lies) think stealing is good as long as you give some of that money to charity.

        EVERY nation that follows this social engineering redistribution trend ultimately collapses of its own peoples "entitlement" mindset because production stops. Why produce when the socialists will tax it away? If you don’t produce, the socialists will reward you with money stolen from the productive.

        All incentive in “Progressivism” is toward failure! YOU sir, are a failure!
      • 5 Months Ago
      FINALLY MONEY TO MAKE BETTER BATTERIES!!! I WANT OBAMAS BABIES!!! well no not really but WOO HOO!!
      • 5 Months Ago
      "The logic of this is beyond me and smells of pork. "]

      It makes perfect sense since the goal of this program is mass production and development of these batteries, so obviously the grants went toward companies with the capacity to do that and who also had existing partnerships with automakers. The money was concentrated in detriot because thats where alot of battery makers who are working with the automakers are located. Its not "pork" simply because you don't like the particular companies that got the grants.
      • 5 Months Ago
      Steve said "So Obama should do nothing? Well the Right should do it their way...oh wait they had 8 years and didn't help us. Hmm what should we do now? Nothing if it were up to the Republicans."

      The economic crisis that were in is in very large part because of the banks and credit institutions. People were buying houses with 0% down! If you dont have enough money to buy something...DONT.

      Now with "Cash for Clunkers" its the same damn thing, but instead of houses its cars. you drive an old car because you cant afford a new one...then they say 'bring in your old (but paid for) car, and they will give you $4500 towards a brand new car...one that you cant really afford, which over time (roughly a year or so), you will fall far enough behind on your payments that it gets repo'd....then what.

      Most cars lose close to half their value in one year! A car is a horrible investment...then only people that should own a new car, are the ones who have a paid off house.
      • 5 Months Ago
      Don't see Any money listed going to ZAAP or ZMMK either.

      might be curtains for zaap..they are at 39 cents up 5 cents this week.
      • 5 Months Ago
      This is another BS bailout for Michigan. Where are the small R&D companies throughout the rest of the US? Complete crap!
        • 5 Months Ago
        "This is another BS bailout for Michigan."

        $1.2Billion is a "bailout" for Michigan? Thats idiotic. Bush gave $700Billion to wallstreet firms and banks - THATS a BS bailout. This is an investment in green tech projects that will reduce our dependence on foreign oil. You republicans seem to be losing your ability to think critically.
        • 5 Months Ago
        I couldn't agree more... where's the money for Tesla who is already producing electric vehicles?????
        • 5 Months Ago
        Paul,

        Ford also has already received millions of the ATVMP or whatever it's called... This however, is a gift and I'm sure Tesla would benefit from a few million given to them by the feds...

        - mnx
        • 5 Months Ago
        I have a major problem with your recent DOE Grant to Smith Electric Trucks. Doesn't anyone do their homework over at DOE? You just awarded $10M of taxpayer money to Smith, a British Co, with a British CEO, selling a Czech built truck with a Korean drive motor getting $10M of taxpayer money. Meanwhile, where are the US jobs?????
        • 5 Months Ago
        Tesla already has a federal loan to help get the model S into production sooner.

        Beavis what are your ideas to help stimulate the economy and encourage development of next generation zero emissions vehicles? Tax cuts for the rich? Drill Baby Drill? Obama has been criticized for relying too much on abstract ideas and "hope", now that he is doing something you criticize him for that. You are full of complaints but offer no solutions.
        • 5 Months Ago
        Why would Tesla get any money for batteries? If I recall correctly, they are just using off the shelf battery solutions. The Govt is funding companies who are developing new battery chemistries, not any one who simply uses batteries.
      • 5 Months Ago
      2020 we are expecting a oil peek and that time we will praise obama for his vision. Lot people are just thinking of today ( gas less that $4 ) and most gas comes from import.

      Somebody has to bear the cost of technology and for my eyes he does is correct. Funding new technology and renewable energy.

      Its far better than spending money and life in middle east just for oil.


      • 5 Months Ago
      Hmm...I think the blog ate my message. Ok, I see lots of people giving me heat for my first message. It was not meant to question the validity of the program. Full disclosure, I work with batteries, my job depends on the success of electric cars in general.

      What I did not like was the fact that a handful of manufacturers received most of the money, and 1 billion is concentrated in Michigan.

      Since when does Dow/Kokam make batteries? Did they produce one cell to deserve 160 billion?

      There are several small US based battery manufacturers that should have been helped, ie: Eagle Picher, Yardney, Quallion, Imara, Boston Power. The way it is now, the money is concentrated in the hands of the usual suspects, A123 (aka. hypemachine), EnerDel (how many times to they need to go BK before people give up on them?) and Dow.
      The logic of this is beyond me and smells of pork. That's all.
        • 5 Months Ago
        Yes, what is the deal with leaving Boston Power out? LG Chem (Korea) and TODA (Japan) are getting money but they can't fund a US company that already has a shipping product the leave other competing products in the dust (see the Enviro batteries HP is shipping for laptops). They just announced their factory in Michigan is postponed


        • 5 Months Ago
        When does a company go from hypemachine to real? as far as i know a123 and enerdel are providing good products. i am surprised boston power saw nothing, but they have one product in the market? they are primarily run by business folk from what ive seen... maybe they are all hype.

        i do not like that the big 3 keep getting MORE monies though.
        • 5 Months Ago
        @ Beavis1a03

        What kind of batteries do you work with specifically? Just idle curiosity since I'm an electrochemist myself.
      • 5 Months Ago
      Can you PLEASE stop calling them the Big 3!! They are the Detroit 3!!!
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