Michigan Approves Li-ion Maker Johnson Controls-Saft for Tax Credits, $20M Pack Credit
30 October 2009
The Michigan Economic Growth Authority (MEGA) board approved Johnson Controls-Saft Advanced Power Solutions LLC (JCS) for an Anchor Jobs incentive. Under this designation, a company that attracts or influences a supplier or customer to locate or expand in Michigan can qualify for tax credits. The company was also approved for a Plug-In and all-electric traction battery pack credit valued at up to $20 million over three years to support the manufacture of battery packs using lithium-ion technology.
Last April, the MEGA board approved a battery cell manufacturing MBT credit valued at up to $100 million over four years and a high-tech MEGA credit over 15 years for the construction of an advanced-battery manufacturing facility. (Earlier post.)
In total, JCS will invest approximately $220 million and create up to 1,096 new jobs, including over 2,000 indirect jobs.
It's encouraging to see some in government making the effort to rebuild transitional industry. Making traction batteries and their components is a brick in the foundation of electrification. US needs to develop a healthy industry building these basic components.
Will they be able to compete with low cost foreign labor? Doubtful. But if you add in the costs of job loss, economic impact, cost to import, loss of ancillary income - building parts at home makes a lot more sense.
No reason why Detroit and California cannot be the locus of the electrification renaissance.
Posted by: sulleny | 30 October 2009 at 09:43 AM