US President Barack Obama announced on Wednesday a $2.4 billion investment in next generation batteries and electric vehicles.

The American Recovery and Reinvestment Act (ARRA) will fund 48 projects in over 20 states to accelerate the manufacture of batteries and electric drive components and the deployment of electric vehicles.

The funds, which will be awarded through the Department of Energy (DOE), will be matched by a further $2.4 billion in cost share from the recipients.

The awards include:

• $1.5 billion to US manufacturers to produce batteries and increase recycling capability;
• $500 million to US manufacturers to produce electric drive components for vehicles;
• $400 million to purchase plug-in and all-electric vehicles for test demonstrations and deployment, as well as for education and workforce training.

The heart of US car manufacture, Michigan, will receive over $1 billion in grants including $550 million to A123Systems and Johnson Controls to establish a manufacturing base for advanced batteries.

Meanwhile, General Motors, Chrysler and Ford will receive a total of more than $400 million to produce thousands of hybrid and all-electric vehicles, as well as batteries and drive components.

Five test markets for hybrid and electric vehicles have been selected, including Oregon, where eTec, a subsidiary of ECOtality, will receive $99.8 million to analyse electric vehicle usage and charging infrastructure.

The project will see up to 1000 of Nissan’s new LEAF electric cars made available in Oregon next autumn, along with 2500 charging stations across the state.

Four other states – Arizona, California, Tennessee and Washington — will also receive up to 1,000 vehicles.

“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,” said President Obama during a visit to Navistar, which is to receive a $39 million grant to manufacture electric trucks.

The investment should create thousands of jobs in the US battery and auto manufacturing industries.

“[It] will launch an advanced battery industry in America and make our auto industry cleaner and more competitive,” commented Energy Secretary Steven Chu. “ help achieve the President’s goal of putting one million plug-in hybrid vehicles on the road by 2015.”

For further information:
www.recovery.gov
www.doe.gov
www.NissanUSA.com
www.ecotality.com
www.etecevs.com
www.a123systems.com

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