Reply #3: Production of stimulus-aided car batteries revs up

[ozymandius]

WASHINGTON – The first wave of mass-produced advanced batteries funded by the Obama administration's economic recovery program is starting to roll off assembly lines, setting the stage for new hybrid and electric vehicles.

Fending off criticism of the $787 billion stimulus program, the administration has cited the battery industry as one of the success stories. With new facilities coming online in the Midwest, battery manufacturers for the advanced vehicles are providing a test case for the government's attempt to revive the economy.

Battery maker A123 Systems Inc. planned to open a new lithium ion battery plant Monday in Livonia, Mich. About 300 workers, many formerly laid-off auto workers, were to join Energy Secretary Steven Chu and Michigan lawmakers to promote their production of battery cells and components. The Watertown, Mass.-based company received $249 million under the stimulus program and plans to open a second facility next year in Romulus, Mich.

The Energy Department estimates that the 48 advanced battery and electric drive projects announced last year under the $2.4 billion program could lead to the production of about 75,000 batteries by next year and 500,000 batteries annually by 2014. Michigan, Indiana, Ohio and South Carolina are the states with the largest share of the projects.

http://news.yahoo.com/s/ap/20100913/ap_on_bi_ge/us_electric_cars