DoE awards Johnson Controls $299 Million for battery manufacturing

August 5, 2009 – The U.S. Department of Energy has awarded Johnson Controls a $299 million grant under the American Recovery and Reinvestment Act (ARRA) to build domestic manufacturing capacity for advanced batteries for hybrid and electric vehicles.  This award represents approximately half of the company’s total planned investment of $600 million in domestic advanced battery manufacturing capacity and infrastructure development.

“This investment is an important step toward creating and building an industry in the United States that addresses market requirements and long-term opportunities for growth and new jobs in this country,” said Alex Molinaroli, president of Power Solutions for Johnson Controls. “We have assembled a world-class team of suppliers and automotive manufacturers, and we believe this comprehensive approach will enable the United States to establish a domestic industry that is competitive, economically viable and sustainable.”

In April, Johnson Controls and its joint venture partner Saft announced that Johnson Controls-Saft was awarded incentives for $148.5 million from the State of Michigan for the establishment of a U.S. manufacturing facility for lithium-ion cells and complete hybrid battery systems in Holland, Michigan. The Holland facility will serve the company’s global customers, including Ford, for its first plug-in hybrid vehicle for 2012, Azure Dynamics, for its 2010 launch of the next generation Balance(TM) Hybrid Electric commercial vehicle, Daimler AG and BMW.

Johnson Controls-Saft earlier this year launched production at the world’s first automotive lithium-ion cell manufacturing and battery assembly facility in Nersac, France.  It is supplying advanced battery technology for the Mercedes S-class hybrid, on sale now, and the BMW 7 series ActiveHybrid available in early 2010.

By converting an existing Johnson Controls facility, the company expects to have the Holland, Michigan plant in operation before the end of 2010.

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