A123Systems Hopes for $1.8B of Loans to Achieve 5 million HEV Packs Come 2013
A123Systems has proposed an application to qualify for the $ 1.84 billion budget in direct loans under the $25 billion Advanced Technology Vehicles Manufacturing Incentive Program (ATVMIP) of the US Department of Energy. This is in support of the company’s plans of building new lithium-ion battery production line in the US, in which Michigan is the foremost site of construction.
If the application is granted, the program would allow A123Systems to develop its production ability in the U.S., intended to provide battery systems for hybrid EVs or plug-in electric vehicles.
A123 anticipates that the total covered area of the facilities will be around 7 million sq. ft. and will create more than 14,000 new jobs. These factories will be producing batteries and technologies that would meet the expectations of A123’s client base in the automotive sector. The company’s existing customers comprises BAE Systems, AES, Black and Decker, Chrysler LLC, Cessna, Project Better Place, General Motors, and Think.