Valence Technology, Inc. submitted a grant application requesting $225 million to the US Department of Energy under the Electric Drive Vehicle Battery and Component Manufacturing Initiative.
This initiative supports the construction of facilities to manufacture advanced battery technology components for electric vehicles. The company’s proposed facility in Leander, Texas would manufacture lithium phosphate cathode material, high-capacity advanced cells and battery packs for electric drive vehicles and other applications.
Valence submitted its application requesting the federal grant funds over a three-year period and plans to fund the remaining $359.4 million (61.5% of the total project costs) through Texas state and local tax and other incentives. The annual production capacity of the proposed facility is estimated to be 660,000 battery packs or more than one million kilowatt hours (kWh) of equivalent available energy and can be online as early as August 2012.
This grant application is a separate request from the Valence’s March loan application under the Advanced Technology Vehicles Manufacturing Incentive Program (ATVMIP) for low interest loans to help finance the construction of this new lithium iron magnesium phosphate battery manufacturing facility. Funds under both programs are available to qualified companies.