American Recovery and Reinvestment grants specifically target companies involved in the research and production of advanced auto batteries. The bulk of funds, $1.5 billion, is being apportioned to battery manufacturers, while $500 million is being invested in U.S. based manufacturers of electric drive components and $400 million toward education and workforce training.
The largest of the grant recipients, all of whom have agreed to match grant amounts with corresponding investments, was Johnson Controls - a fast growing company specializing in developing and manufacturing nickel-cobalt metal battery cells and packs. Based in Michigan, Johnson Controls was given $299 million and also awarded $148.5 million in incentives from the State of Michigan for a plant built south of Grand Rapids that specializes in lithium-ion cell and battery system manufacturing.
Other large grant recipients include the battered General Motors ($242 million for the production of battery packs and electric drive systems for GM's electric hybrid Chevy Volt) and A123Systems ($249 million for the construction of Lithium ion battery manufacturing facilities).
All in all, there is still plenty of more research and development needed in electric automobile battery innovation. Specifically, the challenge will be in developing lengthy recycling capacities for the batteries. If not, electric hybrid car owners will be faced with the prospects of replacing worn out batteries, which could end up being an unwelcome expense.
But with companies like Johnson Controls behind the wheel, no pun intended, auto battery innovation has great potential. The goal, says the U.S. Department of Energy, is to get 1 million plug-in, hybrid electric automobiles on the roadways in the next five years.