DOE Closer To Awarding Grants For Advanced Battery Projects
April 02 2010 - 5:46PM
Dow Jones News
The U.S. Department of Energy could soon issue hundreds of
millions of dollars in federal grants for advanced battery
manufacturing, having cleared several proposals through
environmental review last month.
Manufacturers including Johnson Controls Inc. (JCI) and Dow
Kokam LLC, a joint venture between Dow Chemical Co. (DOW) and
Townsend Kokam LLC, are seeking grants under the $2 billion
Electric Drive Vehicle Battery and Component Manufacturing
Initiative. A representative of the DOE didn't immediately respond
to the question of when the agency expects to issue the grants.
The largest project to clear the review under the National
Environmental Policy Act is the proposed expansion of advanced
lithium-ion battery facilities by Milwaukee's Johnson Controls Inc.
and Oregon-based Entek International LLC. The DOE is considering
providing $299.2 million in a grant to the companies to expand
facilities in Holland, Mich., Milwaukee, and Lebanon, Ore. The
total cost of the expansions would be $599.5 million, according to
the DOE.
The Dow Kokam LLC joint venture is seeking $161 million in a
cost-sharing grant, as well as an additional loan, the size of
which hasn't been yet determined, under the DOE's Advanced
Technology Vehicle Manufacturing Incentive Program. The money will
go toward a new facility in Midland, Mich., to make advanced
lithium-polymer batteries. The capacity would be enough to power
60,000 fully electric and hybrid vehicles, operating with an
average 20-kilowatt hour battery system, according to the DOE.
Another proposal that passed the environmental review is from
Enerdel Inc., which is seeking a $118.5 million grant, as well as
other loans from the DOE, for expanding its battery cell
manufacturing facility in Indiana. Enerdel is the battery
subsidiary of Ener1 Inc. (HEV).
Smaller projects that cleared the review include one by BASF
Catalysts LLC, a New Jersey-based unit of German chemicals giant
BASF SE (BAS.XE), for a $49.2 million project, about half of which
would be provided by the DOE. The project is a new manufacturing
plant in Elyria, Ohio, to produce cathode materials used in
lithium-ion batteries. The capacity would be sufficient to supply
20,000 to 100,000 plug-in hybrid electric cars.
Toda America Inc., which is seeking $35 million for a $70
million project, also cleared the review. The subsidiary of Japan's
Toda Kogyo Corp. (4100.TO) is planning a new factory to produce
cathode materials used in lithium-ion batteries in Calhoun County,
Mich. The total production would be sufficient to supply batteries
for 450,000 hybrid electric vehicles, or 125,000 plug-in hybrid
electrics, according to the DOE.
The environmental review is undertaken after an application is
deemed substantially complete, the applicant's financial and
technical abilities have been established, and once the DOE has
begun its due diligence process.
-By Yuliya Chernova, Dow Jones Newswires;
Yuliya.chernova@dowjones.com