A123 Systems plans to build lithium ion battery plant in Metro Detroit

Good news... big news is starting to surface in Metro Detroit. The latest installment is A123Systems' intention to build a large lithium ion battery manufacturing plant in southeast Michigan.

Lithium-ion batteries are seen as a key component in the electrification of future gas-sipping automobiles, such as the Chevrolet Volt. A123 Systems, which has a large office in Ann Arbor, is one of the leaders in the development of this technology.

The Massachusetts-based firm is applying for $1.84 billion in loans from the U.S. Department of Energy’s Advanced Technology Vehicles Manufacturing Incentive Program. That money will build lithium ion battery plants across the America, but the first is planned for Michigan.

"This plant will be a showcase to our economic turnaround in Michigan," Gov. Jennifer Granholm said in a press release.

A number of world power players have come out in favor of the loans, ranging from the brass at the Big Three to U.S. Sen. John Kerry. If approved, the loans will allow for a dramatic expansion of lithium ion battery production. The plans call for the manufacturing facilities to make enough batteries to power five million hybrid vehicles or half a million plug-in electric vehicles per year by 2013.

These plants will create more than 14,000 jobs that will supply lithium ion batteries for the seven automakers and 19 vehicle models that fall under A123 Systems’ umbrella.

Source: A123 Systems
Writer: Jon Zemke