Detroit Automakers Win Over $400 Million in Government Grants for Batteries

Joshua Duval
#GM, #Volt

The Obama administration today announced the winners of $2.4 billion in grants the government is issuing to spur the development of advanced battery technologies. The Detroit Three automakers will receive more than $400 million for different projects involving advanced battery manufacturing.

General Motors won the most money, receiving approximately $240 million to spend on three projects. The biggest grant, $105.9 million, will be used for the production of the 2011 Chevrolet Volt's lithium ion battery pack. GM will build the batteries with cells sourced from LG Chem and "other cell providers to be named."

An additional $30.5 million given to GM will be used to "develop, analyze, and demonstrate up to 5000 Chevrolet Volt" vehicles to consumers. Another $105 million grant will be used for electric drive component manufacturing facilities in Wixom, Michigan, and White Marsh, Maryland.

Ford will receive $62.7 million for producing an electric-drive transaxle with integrated power electronics at a facility in Sterling Heights. Ford will use an additional $30 million grant to speed up the launch of its plug-in hybrid and electric vehicles by working with 15 utility companies.

Chrysler's $70 million grant will go directly to the manufacturing facilities in Warren, Michigan, and St. Louis, Missouri, that will develop and deploy a test run of 220 electric minivans and trucks.

Other Michigan ventures that won federal grants include A123 Systems ($249 million), Wayne State University, Michigan Tech and the University of Michigan ($10.5 million combined), Johnson Controls and partner Entek (almost $300 million), Compact Power on behalf of LG Chem ($151 million), KD ABG MI ($161 million), and Magna E-car Systems of America ($40 million).

President Barack Obama, Vice President Joe Biden, and Energy Secretary Steven Chu were to announce the winners today in Indiana, Michigan, and North Carolina, respectively.

Source: The Detroit News

I have my doubts about this... How much money did we give to AIG? And now why are we only investing 2.4 billion in alternative transportation then? Anyways, in his speech, Obama says smaller businesses are more innovative, then why is the majority of the grant money going to the Big 3 automakers? GM built an electric car 10 years ago, and destroyed it (read about the EV1). They don't deserve a dime of our tax dollars. Not to say that I dont think we should be investing in electric cars- it just doesn't make sense to award $200 million dollars to a company (GM) who built an electric car and sold the relevant patents to an oil company (Chevron), who refuses to let anyone put NiMH batteries in 100% electric cars now. And on the topic, if Obama wants to get serious about electric cars, he should enact eminent domain to release the NiMH battery patents from Chevron! To learn more check out and
good for GM, i hope that is good for job creation.

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