$2.4bn money boost for batteries and EVs

Companies developing next generation batteries and electric vehicles will get further funding from the Obama administration through the expected $2.4bn grants from the US Department of Energy (DOE) courtesy of the American Recovery and Reinvestment Act.

According to the DOE, 48 new projects where selected to accelerate the development of U.S. manufacturing capacity for batteries and electric drive components as well as the deployment of electric drive vehicles.

DOE said this is the single largest investment in advanced battery technology for hybrid and electric-drive vehicles ever made. Aside from the $2.4bn grant, award winners will contribute to the projects another $2.4bn.

  • $1.5 billion will be awarded to U.S. based manufacturers to produce batteries and their components and to expand battery recycling capacity;

  • $500 million to U.S. based manufacturers to produce electric drive components for vehicles, including electric motors, power electronics, and other drive train components;

  • $400 million 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.

One of the award winners is Dow Chemical (which I just received an email from) who has a joint venture project called Dow Kokam with Townsend Kokam LLC.

Dow Kokam received a $161 million grant to develop its advanced superior lithium polymer battery (SLPB) technology for the hybrid and electric vehicle markets. The funding is expected help establish the company’s construction of a new 800,000 square foot facility in Midland, Mich. to produce the batteries.

Construction is expected to begin by late October 2009 and battery production is slated to begin in early 2011. Dow said the facility is expected to produce enough batteries to supply 60,000 hybrid or electric vehicles per year.

Here are the list of other award winners from the DOE.

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