Michigan: Advanced Battery Capital of the World
Advanced Batteries and Energy Storage became a top priority when we launched an economic development strategy in 2006 to kickstart incentives and programs for new industry sectors where Michigan has distinct advantages and a solid infrastructure.
It was clear that Michigan—as home to more than 330 transportation R&D companies, 65,000+ engineers, and world-class engineering schools—was exceptionally positioned to address the critical national need of developing a domestic advanced battery manufacturing industry.
We proactively launched two aggressive, first-of-their-kind incentive programs to seed the industry and complement federal funding opportunities – Centers of Energy Excellence and an advanced battery credits program that was ultimately funded with more than $1 billion.
The result is the stuff of legend.
- Since November 2008, Michigan has announced nearly $6 billion of investments in the advanced battery industry.
- The next generation of electric vehicles and the batteries that power them are estimated to create more than 60,000 new jobs in Michigan over the next decade.
- Nine of 10 top automotive OEMs developing Hybrid Electric Vehicles (HEVs), Plug-In Hybrid Electric Vehicles (PHEVs) and Electric Vehicles (EVs) are in Michigan.
- In July 2010, President Obama participated in the groundbreaking ceremony for advanced battery manufacturing facility LG Chem/Compact Power in Holland, Michigan.
“I am calling to congratulate A123 Systems on this tremendous milestone.”
- Barack Obama
President of the United States of America
The Michigan Advantage for Advanced Batteries and Energy Storage
In 2009, the U.S Department of Energy allocated $2.4 billion to spur domestic development of new battery technology, advanced power trains and vehicle platforms. Michigan answered the call with a strategy and investment commitment that was backed by our depth and breadth of automotive technology and manufacturing resources. These advantages led to Michigan’s $1.36 billion DOE award, which has created a future for growth in Michigan that just keeps improving:
- Unmatched Value Chain: The plan that brought the advanced battery industry to Michigan tapped into existing value chain strengths. Michigan’s value chain for advanced battery and energy storage fills the spectrum. R&D, engineering and prototyping, component manufacturing, testing and assembly. Michigan’s automotive legacy offers an advanced manufacturing infrastructure found nowhere else.
- Access to Talent: In Michigan, we not only lead the country in the number of working engineers, but we’re one of the four best states at growing and graduating them. Our skilled manufacturing workforce, also a result of our place in the automotive industry, is one of the most highly-trained in the world.
- Research & Development: Michigan’s vehicle-related R&D spending exceeds all others states and countries in North and South America – combined. And our universities and colleges work together with business and industry to commercialize research.
- Strategic Growth: Much has been accomplished, but we’re just getting started. As Michigan continues our tactical industry development, we are also anticipating the needs of the U.S. Smart Grid and energy production, transmission and storage.
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