LIVONIA, Mich. — A123 Systems, a developer and manufacturer of advanced Nanophosphate lithium ion batteries and systems, has opened what is believed to be the largest lithium ion automotive battery production facility in North America.
The opening of the new plant in Livonia, Mich., comes just over one year after A123 was awarded a $249 million grant from the U.S. Department of Energy (DOE) as part of the American Recovery and Reinvestment Act. The company was granted funds to help execute its strategy to ramp up U.S. manufacturing capabilities to meet increasing, market-driven demand for its innovative technologies.
"The opening of our Livonia facility is a significant milestone and confirms that we are accomplishing our stated objectives that accompanied the DOE grant. Bringing this factory on line in just over a year is a testament to our technology innovation and strategic plan to ramp up manufacturing, but it also speaks to the maturity of the market—without significant customer demand for our products today, a capacity expansion of this magnitude would not be possible," said David Vieau, president and CEO of A123 Systems. "We are grateful to the DOE, the state of Michigan and everyone else who helped make this vision a reality. Over the next several years, we expect to create thousands of jobs in greater Detroit and plan to continue our expansion in the area as we do our part in helping the U.S. emerge as a global leader in the production of advanced lithium ion batteries."
A123 will focus on manufacturing prismatic cells and systems at the new 291,000-square-foot Livonia facility. The factory is designed to enable the complete production process, including research and development, manufacturing of high-value components, cell fabrication, module fabrication and the final assembly of complete battery packs ready for vehicle integration. As part of its continuing U.S. manufacturing ramp up, A123 also plans to open a coating plant in Romulus, Mich., expected to come on line during the first half of 2011.
In addition to the DOE grant, the company received $125 million in state incentives from Michigan as part of its 21st Century Jobs Fund to help finance these manufacturing facilities. The company said it expects to create thousands of jobs in the state.
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