Back to Main PageInvestment in Battery Technology Brings Jobs, Helps Diversify Economy
October 13, 2009 by Senator Glenn S Anderson
Michigan has always been a leader in automotive technology, and despite the industry’s recent struggles, we now have a tremendous opportunity to continue that role in the development and production of hybrid and electric cars. Earlier this year, Vice President Joe Biden announced an investment of over $1.3 billion in Michigan from the American Recovery and Reinvestment Act's (ARRA) electric drive vehicle battery and component manufacturing initiative to help accomplish this. Among the projects funded, $249 million will help A123Systems Inc. launch a new facility in Livonia. The company plans to invest more than $600 million in facilities in Livonia, Brownstown and Romulus, creating hundreds of jobs in the area and potentially adding thousands more once the project gets underway.
Creating jobs in emerging high-tech industries and diversification of Michigan’s economy have been two of my top priorities as a State Senator. I voted with other members of the State Senate back in 2008 to pass House Bill 6611, which created incentives for investment in the development and manufacturing of lithium-ion and other batteries used to power hybrid and electric cars. Additionally, this year I supported House Bill 4515 and Senate Bill 319 to further expand these credits as they began to show signs of success. The purpose of these incentives has always been to provide jobs for Michigan workers, and the fact that A123Systems has chosen to locate this important facility locally is a testament to the quality of the workforce present here and the commitment of state and local leaders to help put Michigan back to work.
A123Systems is one of the state's six Centers of Energy Excellence and has entered into a development and manufacturing agreement with Chrysler LLC to provide battery systems for the company's ENVI product line. Production of these batteries will help reduce dependency on fossil fuels, including foreign oil, and meet growing consumer demand for greener, cleaner vehicles and reduce environmental impact. This investment represents exactly how federal, state, and local officials can come together to support local businesses and move toward diversifying and reenergizing Michigan’s economy.
The impact of this ARRA investment in our state will be far-reaching. The projects it will fund are estimated to create 6,800 jobs statewide in the next 18 months, and up to 40,000 jobs by 2020. As demand increases for fuel-efficient vehicles, Michigan's auto companies will rise to the occasion, helping our economy bounce back and paving the way for our state to regain its status as an auto leader. This announcement is very encouraging, and has proven that hard work pays off. I will continue to make Michigan state government an enabling agent for these sorts of investments in Michigan workers and bring jobs like these back home to my district.
Posted in Economy, Jobs, Industry, Labor
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