Investment in advanced battery companies continues in the USA where the Michigan Economic Growth Authority (MEGA) has awarded $543.5million in tax credits to four companies with plans to invest more than $1.7billion in lithium-ion manufacturing facilities across the state.
The state refundable tax credits will assist their companies in their efforts for some of the $2billion in Federal grants available for advanced battery research and development. The four companies to benefit are: KD Advanced Battery Group LLC; A123Systems Inc; LG Chem-Compact Power Inc; and Johnson Controls-Saft Advanced Power Solutions LLC.
Here are the project details for each company:
- - A123Systems Inc: The company plans to invest more than $600million in initial coating, cell manufacturing and pack assembly. The MAG board has approved a state tax credit of $22.5million over 15 years and a battery cell state tax credit of $100million over four years.
- - Johnson Controls-Saft Advanced Power Solutions LLC: The firm plans to invest $220million in a new advanced battery manufacturing facility to produce lithium-ion cells for automotive applications. It is expected that the company will use its existing facility in Holland, Michigan. The MEGA board approved a state tax credit of $48.5million over 15 years and a battery cell state tax credit at $100million over four years.
- - KD Advanced Battery Group LLC: The group has formed a joint venture with Townsend Ventures LLC, Kokam America Inc and The Dow Chemical Company to construct and operate a large scale battery and cell manufacturing facility within the state. The MEGA board approved a state tax credit of $44.6million over 15 years and a battery cell tax credit at $100million over four years.
- - LG Chem-Compact Power: The Korean based company will team with US subsidiary Compact Power and General Motors to manufacture lithium-ion battery cells in Michigan with plans for a $200million investment. The MEGA board approved a state tax credit of $22.5million over 15 years and a battery cell state tax credit of $100million over four years.
The latest agreements follow battery incentive projects with Ford and GM totalling $215million for pack engineering, integration and assembly that were agreed in February.
