Wayne County -- A123 Systems, a company that supplies lithium-ion batteries, will create more than 300 jobs in Wayne County, County Executive Robert Ficano announced today.
Based out of Watertown, Mass, A123 Systems, with locations in Ann Arbor and Novi, will break ground in Livonia. The site is located at 39000 Seven Mile, just west of I-275.
The site will be home to a regional headquarters.
"Wayne County in strong partnership with Livonia brought A123 here, where it will establish its Center of Energy Excellence and supply batteries for electric cars," Ficano said. "We want to thank the Governor for her vision in the battery manufacturing area and offering MEGA credits to viable companies. We also want to congratulate the Mayor of Livonia for his cooperation and diligence in helping to bring the company to Wayne County."
One of the strong incentives that attracted the company was Wayne County's TURBO program. TURBO (Transforming Underdeveloped Residential and Business Opportunities) program offers property tax abatements.
"This is one of many companies we are seeking to attract to Wayne County," said Turkia Awada Mullin, director of economic development. "We are the economic engine for this region. We have a sophisticated infrastructure, R and D, a skilled workforce and the economic driver -- the Detroit Metropolitan Airport. We want companies around the world to know that we want your business and we will do what it takes to get you to locate here."
Last week A123 Systems announced a deal with Chrysler LLC to supply battery packs for Chrysler's first-generation ENVI extended-range and battery-only vehicles. Production will begin in 2010.
The state of Michigan today approved Michigan Economic Growth Authority (MEGA) tax credit for A123 in Livonia. The tax credits are designed to help companies involved in advanced battery development, battery pack assembly, research and engineering to support battery use in vehicles, engineering of advanced battery technologies and capital investment for the construction of battery-making facilities.
Gov. Jennifer Granholm signed a bill on April 6 that added $220 million in state tax credits for companies that manufacture advanced batteries. The state has positioned now to receive federal grants totaling $2 billion for advanced battery development.
Wayne County will provide A123 a reimbursable grant worth $1 million to offset upfront infrastructure improvements and assist the company in applying for a Foreign Trade Zone designation for the Livonia site.
The Southeast Michigan Community Alliance will also provide a $1.25 million grant to A123 for on-the-job training or in-class training of employees. It is estimated that the U.S. battery market could climb to $18 billion a year by 2020 and battery manufacturers could create as many as 20,000 jobs in Michigan by the year 2020.
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