As a resident of the State of Ohio, I am bred with an innate loathing of all things Michigan. However, knowing the economic crunch that both Ohio and Michigan currently find themselves, I am somewhat awed by the bold steps that State up north are taking.
Michigan is awarding more than one-half billion dollars in tax credits to four companies; Johnson Controls-Saft Advanced Power Solutions LLC, KD Advanced Battery Group LLC, A123Systems Inc., and LG Chem-Compact Power Inc. for the express purpose of having their production facilities in state. In return, the companies will invest more than $1.7 billion to bring their plants to fruition.
It doesn't take a rocket scientist to understand this means more jobs, more local taxes and more state taxes as the businesses mature. This is very forward thinking on the part of Michigan politicians and I wish I could say that Ohio was doing likewise, but I cannot. The hope is that the US automakers survive and then can choose a battery company to supply their needs for hybrid and EV models in the future. Currently, the Chinese have taken the lead in battery production, especially Li ion varieties.
The state refundable tax credits will help the companies in their quest for some of the $2 billion in federal grants for advanced-battery research and development. Facility locations will be determined pending final site selection decisions by the companies, but you can rest assured they will not be located far from Detroit.
Today marks a defining moment for Michigan's future as we see a new industry begin to take root and grow new jobs. Thanks to the most aggressive economic strategy of any state in the country, Michigan, the global center of automotive research and development, is positioned to lessen the nation's dependence on foreign oil and become the advanced battery capital of the world.
—Michigan Governor Jennifer M. Granholm
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