A Japanese battery producer has picked Battle Creek for its first foray into the U.S. market. It plans to create 50 to 60 new jobs, a $70 million "green tech" manufacturing plant and more.
A plan to produce lithium-ion vehicle batteries at a soon-to-be-built facility in Battle Creek became official Feb. 16 when
Toda America Inc., a subsidiary of Toda Kogyo Corp. in Japan, finalized a $35 million award from the U.S. Department of Energy, letting locals, Michigan and the U.S. play a part in the electrification of cars and other vehicles.
Toda will match the $35 million award from the DOE in order to build the plant at Battle Creek's Fort Custer Industrial Park, a site where pre-construction preps such as environmental remediation have already begun.
"The Toda project contributes triple benefits of strategic acceleration of U.S. electrification of vehicles, immediate creation of green tech jobs, and redevelopment and reuse of existing industrial land in support of urban revitalization," says David Han, president of venture development firm Turtlerock Greentech, and a consultant to Toda.
Construction on Phase 1 of the Toda plant will begin in one to two months and the plant will begin operating by February 2011.
The plant will manufacture cathode materials for lithium-ion batteries for electric and non-electric vehicles. It is currently a leading manufacturer of cell phone and computer batteries.
The company, which is working with the Department of Energy as part of the Reinvestment and Recovery Act, is receiving other economic development incentives from the City of Battle Creek and the State of Michigan. Both worked to convince Toda to choose Battle Creek over several other cities.
The plant will expand in phases through 2013, eventually producing 4,000 tons of finished products each year at a total sales volume of about $130 million.
The Michigan Department of Economic Development says 50 to 60 direct new jobs will be created at the plant and up to 148 new jobs, including 91 indirect jobs, will result from the construction and operation of the plant.
"This is a critical step for Toda Kogyo Group in our quest to maintain our global leadership as the premier supply chain partner to both battery and electric vehicle manufacturers around the world," Junichi Nakano, President and CEO of Toda America, said in a statement released last week.
Writer: Kim North Shine
Source: David Han, Turtlerock Greentech
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