A123Systems Hopes for $1.8B of Loans to Achieve 5 million HEV Packs Come 2013

Jerry — Thu, 29 Jan 2009 06:50:48 +0000

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.

EnerDel, another Lithium-ion battery producer, also made their application for the $480 million low-interest loan under ATVMIP. The company has their plant in Indiana and aims to double their production volume by 2011. If EnerDel made it, by 2015, they will construct a second bigger plant competent in manufacturing battery packs for up to 1.2 million hybrid electric vehicles.

Department of Energy of the US said that they had received 34 applications during the first batch, which closed on December 31, 2008.

Environmentally Friendly Cars » Lithium-ion battery

A123Systems Hopes for $1.8B of Loans to Achieve 5 million HEV Packs Come 2013