Battery maker with Ohio ties seeks to build new plant
Tuesday, January 13, 2009
A Massachusetts company with a local connection wants to build a lithium-ion battery manufacturing plant in Michigan.
A123 Systems of Watertown, Mass., said last week it is seeking a $1.8 billion government loan to build a lithium battery manufacturing plant in southeast Michigan.
While Ohio is not getting the plant, observers note that A123 Systems is a collaborator with a Greene County firm, Applied Sciences Inc. in Cedarville. And some hope there may be opportunities for Ohio down the line.
A123 said it plans more than one facility, with combined plants occupying as much as 7 million square feet and employing more than 14,000 people. The company envisions full production volumes reaching 5 million hybrid vehicles or 500,000 "plug-in" electric vehicles per year by 2013.
"As these technologies emerge, these are the kinds of projects we need to compete for," said State Sen. John Husted, R-Kettering.
A123 is a subcontractor to Applied Sciences in a state government Third Frontier-funded program. The Ohio company makes tiny carbon nanofibers that developers say can extend the range of General Motors Corp.'s planned electric car, the Chevrolet Volt, from 40 to 80 miles on a single charge.
John Mackay, a spokesman for Applied Sciences, said whether a similar plant is built in Ohio is between the state and A123. "We're supportive of any efforts to bring similar technology to Ohio," Mackay said.
GM on Monday named LG Chem Ltd. of South Korea as the lithium-ion battery supplier for its Chevrolet Volt electric car. But Mackay said the announcement regarding the production of first-generation lithium-ion batteries was not unexpected.
"It's not a disappointment," Mackay said. "We envision using our material (carbon nanofibers) in a future-generation (product)."
A123 could not be reached for comment. The company is in a quiet period after registering for an initial public offering of its stock in August. In a statement, the company said its southeast Michigan plant would be its "first construction location."
Robert Grevey, a spokesman for the Ohio Department of Development, said he was not aware of any overtures from the company to the state.
