Elkhart, Indiana – The U.S. government has announced US$2.4 billion in grants to accelerate the manufacturing and deployment of batteries and electric vehicles, to be coupled with another $2.4 billion in cost sharing from the grant recipients.

The funding, provided under the American Recovery and Reinvestment Act, will fund 48 new advanced battery and electric drive component projects in over 20 states. The grants were announced by president Barack Obama; recipients will be selected through a highly competitive process by the Department of Energy.

“If we want to reduce our dependence on oil, put Americans back to work and reassert our manufacturing sector as one of the greatest in the world, we must produce the advanced, efficient vehicles of the future,” Obama said.

The announcement marks the single largest investment in advanced battery technology for hybrid and electric-drive vehicles ever made. Industry officials said the joint $4.8 billion will directly result in creating tens of thousands of manufacturing jobs in the U.S. battery and auto industries.

The awards will cover $1.5 billion to U.S.-based manufacturers to produce batteries and components, and to expand battery recycling capacity; $500 million to produce electric drive components for vehicles; and $400 million to purchase thousands of plug-in hybrid and all-electric vehicles for testing, and to deploy and evaluate their performance, along with the installation of an electric charging infrastructure, and education and workforce training.

The announcement was made at Navistar International Corporation in Indiana, which will receive a $39 million grant to manufacture electric trucks. The company said the grant will ultimately create or save hundreds of jobs when full-scale manufacturing at the site commences. Overall, seven projects in Indiana will receive grants totalling more than $400 million, including one university.

Michigan companies and institutions will receive the largest share of grant funding of any state. Two companies, A123 and Johnson Controls, will receive a total of approximately $550 million to establish a manufacturing base for advanced batteries, while Compact Power and Dow Kokam will receive over $300 million for manufacturing battery cells and materials. Large automakers in Michigan, including GM, Chrysler and Ford will receive a total of more than $400 million to manufacture advanced hybrids and electric vehicles, along with batteries and electric drive components, while three universities will receive a total of more than $10 million for education and workforce training.

Other projects include lithium ion battery manufacturing facilities in North Carolina and Florida, and a company in Pennsylvania that will increase production capacity of lead acid batteries with carbon supercapacitors for micro and mild hybrid applications. Smith Electric, an electric truck manufacturer in Missouri, will receive $10 million to deploy up to 100 electric vehicles.

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