Four Advanced Battery Giants to receive $543.5 mn US from Michigan (Funding, G&C)

Johnson Controls-Saft Advanced Power Solutions, KD Advanced Battery Group, A123Systems, and LG Chem-Compact Power will split $543.5 million from the Michigan Economic Growth Authority (MEGA) after the companies announced that they will invest $1.7 billion in li-ion manufacturing facilities across the state. MEGA is a division of the Michigan Economic Development Corporation.

The details:

· Johnson Controls-Saft (JCS) will invest $220 million in a new advanced-battery manufacturing facility to produce li-ion cells -- its first in the US. Subject to final State and local incentives, the company will use an existing JCS facility at its site in Holland, MI. MEGA approved a state tax credit valued at $48.5 million over 15 years and a battery cell state tax credit valued at $100 million over four years.

· KD Advanced Battery Group (KD) plans to invest $665 million in a new 800,000 square-foot battery manufacturing facility to produce its patented Superior Lithium Polymer Battery technology for the EV and hybrid markets. MEGA approved a state tax credit valued at $44.6 million over 15 years and a battery cell tax credit valued at $100 million over four years.

· A123 Systems will invest more than $600 million in initial coating, cell manufacturing, and pack assembly. MEGA approved a high-tech state tax credit valued at $25.2 million over 15 years and a battery cell state tax credit valued at $100 million over four years.

· LG Chem, in partnership with its US subsidiary Compact Power and General Motors, has proposed a plan to manufacture lithium-ion battery cells in Michigan. LG Chem plans to invest $200 million in the project. MEGA approved a state tax credit valued at $25.2 million over 15 years and a battery cell state tax credit valued at $100 million over four years.

(Source: Green Car Congress, April 14, 2009) Contact: Bridget Beckman, Michigan Economic Development Corporation, (517) 335-4590, beckmanb1@michigan.org, www.themedc.org; Ric Fulop, Vice President, Business Development, A123 Systems, (617) 758-4142, rfulop@a123systems.com, www.a123systems.com; LG Chem, www.lgchem.com; Chris Groesbeck, Compact Power, (248) 291-2376, cgroesbeck@compactpower.com, www.compactpower.com; Rebecca Fitzgerald, Johnson Controls, (414) 524-2945, Rebecca.k.Fitzgerald@jci.com, www.johnsoncontrols.com, Ji ll Ledger, Saft, +33 (0) 1 49 93-1777, Jill.ledger@saftbatteries.com, www.saftbatteries.com; Kokam America, parent company of KD Advanced Battery Group, (816) 525-1153, www.kokamamerica.com.