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US Announces $2.4B Battery and Plug-In Manufacturing and Deployment Grants

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  • Felix Kramer
    We want to share ASAP today s news. Below we include a quote, the basics, our quick summary of who got what, and URLs for the full list and related primary
    Message 1 of 1 , Aug 5, 2009
      We want to share ASAP today's news. Below we include a quote, the
      basics, our quick summary of who got what, and URLs for the full list
      and related primary sources.

      (Shortly after it goes out on email, this posting will also be
      viewable at http://www.calcars.org/news-archive.html -- there you can
      add CalCars-News to your RSS feed.)

      CalCars' Founder Felix Kramer said, "We appreciate President Obama
      announcement of the largest-ever federal funding of the electric
      battery industry. This $2.4 billion is for manufacturing and
      deployment--not for research. Batteries are good enough already;
      further improvements will be icing on the cake. This program will
      significantly accelerate the availability of components for the new
      plug-in vehicles coming in the next three years. It will put
      thousands of vehicles on our roads. It boosts the electrification of
      larger heavy-duty vehicles. And it begins to demonstrate the
      feasibility of converting existing vehicles to plug in."

      The President led an A-team fanning out around the country,
      announcing 48 projects in 25 states, funded by the Recovery Act. He
      returned to Elkhart, Indiana, where he had visited a town meeting in
      April 2008. Speaking at the Monaco RV plant (a Navistar Company) in
      Wakarusa, he said this was about "creating the infrastructure of
      innovation," zeroing in on the jobs, economic, energy security and
      environmental benefits of these grants. Vice President Biden,
      accompanied by GM CEO Henderson, Michigan Governor Granholm, and
      members of Congress, is announcing grants in Detroit. Energy
      Secretary Chu is announcing grants in North Carolina. They've left
      it to the companies to provide details, including estimates of job impacts

      In all, 257 companies and joint ventures applied for a total of $9.6
      billion. 20 percent of the awards will go to small businesses, and
      the private sector funds matched the grants with a $2.4 billion cost
      share. The program is known as "Recovery Act Funding Opportunity
      DE-FOA-0000026 Electric Drive Vehicle Battery and Component
      Manufacturing Initiative. Still to be announced are "Transportation
      Electrification" and "Clean Cities FY09 Petroleum Reduction
      Technologies Projects for the Transportation Sector"

      Though some early news stories mistakenly described these as
      "research" grants, the White House's press headline says it best:
      "President Obama Announces $2.4 Billion in Grants to Accelerate the
      Manufacturing and Deployment of the Next Generation of U.S. Batteries
      and Electric Vehicles; Recovery Act will fund 48 new advanced battery
      and electric drive components manufacturing and electric drive
      vehicle deployment projects in over 20 states."

      The grants cover, according to the press release:
      * $1.5 billion in grants to U.S. based manufacturers to produce
      batteries and their components and to expand battery recycling capacity;
      * $500 million in grants to U.S. based manufacturers to produce
      electric drive components for vehicles, including electric motors,
      power electronics, and other drive train components; and
      * $400 million in grants to purchase thousands of plug-in hybrid and
      all-electric vehicles for test demonstrations in several dozen
      locations; to deploy them and evaluate their performance; to install
      electric charging infrastructure; and to provide education and
      workforce training to support the transition to advanced electric
      transportation systems.

      Our quick look at the five-page list leads to this summary:
      * Battery and materials manufacturing grants go to a range of
      solutions in the lithium family, most to the largest,
      most-established cell manufacturers and packagers, with two small
      lead-acid variations for micro or mild hybrids.
      * GM gets $240M in three grants; Ford gets $92.7M and Chrsyler gets
      $70M; smaller US manufacturers and integrators didn't receive grants.
      * Most component maker grants went to largest, most-established suppliers.
      * Oregon, Washington, Callifornia, Arizona and Tennessee will get
      12,500 battery charging stations from eTec, all Level 2 (240 volts)
      or Level 3 (high-power charging for large vehicles and fast-charging
      for small ones).
      * Deployment funds will put on the road 5,000 Nissan EVs, 220
      Chrysler PHEV pickups and minivans, 378 trucks and shuttle buses by
      companies working with South Coast Air Quality Management District,
      400 Navistar EV delivery trucks, 500 Chevy Volts for consumers and
      125 for utilities, and 130 Ford Escape PHEVs.
      * Large vehicle conversions include the redesign and delivery by Ford
      of 20 E450 vans as PHEVs and perhaps some Ford F150s turned into
      "Faraday" EVs by Smith Electric.
      * Multiple education and training programs for both professionals and
      graduate, undergraduate and high school students include one at San
      Francisco City College with Pat's Garage and Perfect Sky (trainer
      Jack Rosebro), both long-time CalCars partners.

      See analyses and comments at

      Primary sources:
      * Press release
      * Text of President Obama's speech
      * List of grants
      * Map of the grants

      -- -- -- -- -- -- -- -- -- -- -- --
      Felix Kramer fkramer@...
      Founder California Cars Initiative
      -- -- -- -- -- -- -- -- -- -- -- --
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