Obama Administration Identifies Winners of $2.4 Billion in Battery Grants
August 05 2009 - 11:56AM
Dow Jones News
The Obama administration awarded $2.4 billion in grants to
developers of next-generation car batteries and parts, a move that
will give a lift to the Big Three automakers and position the
companies in a position to lead the way in the development of a
domestic electric-vehicle industry.
General Motors Corp. will receive more than $240 million,
reflecting three separate grants, according to a list published by
the U.S. Energy Department. Ford Motor Co. (F) will receive a total
$92.7 million, including $62.7 million for an electric-drive parts
facility in Michigan. Chrysler LLC will receive $70 million to
develop and deploy advanced plug-in hybrid pickups and
minivans.
The biggest single award will go to Johnson Controls Inc. (JCI),
which will receive almost $300 million to produce battery parts for
hybrid and electric vehicles, according to a list distributed by
the White House. Johnson Controls is building a battery factory in
Michigan with support from Ford. The next-biggest grant was awarded
to A123 Systems Inc., which will receive $249.1 million. The
company has a deal to supply Chrysler LLC with batteries for
planned electric vehicles and hybrids.
EnerDel, the parent of Ener1 Inc. (HEV), will receive $118.5
million to produce lithium-ion cells and packs at a plant in
Indianapolis.
-By Siobhan Hughes, Dow Jones Newswires; 202-862-6654;
Siobhan.Hughes@dowjones.com