Senate approves legislation to make Michigan leader of electric vehicle battery production
LANSING — The Senate recently approved legislation designed to help make Michigan the leader of advanced battery production for electric vehicles, said Sen. Randy Richardville, who voted for the measure.
“Michigan has the opportunity to take the lead on manufacturing electric car batteries,” said Richardville, R-Monroe. “This would be positive growth for an industry that is struggling.”
Currently, there is no large scale vehicle-related lithium-ion battery manufacturing in the United States. Japan, South Korea, India and China presently produce the batteries needed for electric vehicles.
If signed into law House Bill 6611 would create four Michigan Business Tax credits focused on advanced battery technology. The credits for pack and cell manufacturing are driven by deliverables – meaning if the firms fail to perform the work, they will not receive the credits.
General Motors is expected to make a decision early next year about where to locate its Volt battery pack manufacturing. In addition to awaiting GM’s decision, the state is currently working with a cell manufacturing company to locate its project in Michigan.
“This legislation encourages GM to develop a battery manufacturing plant here in Michigan,” Richardville said. “It could provide more jobs for state residents and help move the automotive industry toward new important technologies.”
The market for advanced batteries is projected to be $50 billion a year by 2020.
Posted: Monday, December 22, 2008
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