2.4 billion US dollars in federal grants to electric vehicles, COP 15
Release Date: 2009-08-06
The aim is to develop next-generation electric vehicles and batteries in the single largest investment in advanced battery technology for hybrid and electric-drive vehicles ever.The presedential initiative is the biggest bet yet on a future far less dependent on fossil fuels.
"The ultimate success of electric cars relies on better batteries, better drive-trains, reducing carbon emissions, making alternative energy more available," Vice President Joe Biden said in Detroit Wednesday.
"If we fail to invest, virtually none of that market will be in the US ... We have a tremendous opportunity here — right here in Detroit — to invest in our vehicle fleet, shifting toward electrification."
The grants will be split among nearly 50 projects in 25 states, with the biggest shares going to Indiana and Michigan to create job opportunities in the automotive industry.
The administration calls it the single largest investment in advanced battery technology for hybrid and electric-drive vehicles ever made.
The $2.4 billion is divided into $1.5 billion to the production of batteries and their components, $500 million for other components needed for the cars and $400 million toward buying plug-in hybrid cars for test demonstrations, install an electric charging network and training for technicians and related costs.
An Arizona-based company working with Nissan Motor Co. is getting nearly $100 million to supply chargers for electric vehicles. Electric Transportation Engineering Corp., a subsidiary of ECOtality Inc., has a deal with the Japanese automaker to provide private and public charging stations as 5,000 Nissan plug-in electric vehicles launch in 2010.
ECOtality President and CEO Jonathan Read said the initiative will be the "largest rollout of electric charging stations and electric vehicles."
Still, with the massive R&D effort comes hurdles, and the biggest one is cost.
Gerald Meyers, a University of Michigan business professor and former chairman of American Motors Corp., said the grants are appropriate and not excessive when compared with other government expenditures.
Dow Chemical Co. Chairman and CEO Andrew Liveris was in Detroit for the announcement. A Dow joint venture called Dow Kokam received a $161 million grant to build a lithium polymer battery technology manufacturing plant in Dow's home of Midland, Michigan.
Creating what he called "a completely new market segment" is difficult but necessary to curb carbon emissions and revitalize US manufacturing.
"The country is being re-engineered," he said.
| Type: | NORMAL |
| Company: | COP 15 |
| Country: | Denmark |
| Url: | http://en.cop15.dk/news/view+news?newsid=1836 |