Midland, Mich. – February 24, 2010 – The Michigan Economic Growth Authority (MEGA) has approved Dow Kokam’s application for tax credits to produce lithium ion battery packs for hybrid and electric vehicles at its battery manufacturing facility in Midland, MI., signaling another important milestone in the advancement of Dow Kokam as the leading full-package battery system producer, and the growing importance of Midland and the state of Michigan to the advanced battery industry.
“The state of Michigan has been unwavering in its support of the development of a vibrant advanced energy storage industry and because of that, in only ten months, we have built the foundation for the flourishing enterprise that is Dow Kokam,” said Ravi Shanker, CEO of Dow Kokam.
The tax credits, equivalent to $42 million, enable Dow Kokam to incorporate battery pack assembly equipment and production in Phase II of its production plan which could be initiated as early as 2011.
Dow Kokam is prepared to construct a new 800,000 square foot highly automated large-format battery manufacturing facility in Midland to produce battery systems for the electric vehicle and hybrid electric vehicle markets. When complete, the facility will have the capacity to manufacture 1.2 billion watt hours of large format prismatic cell and batteries annually; enough to power 60,000 fully electric or hybrid electric vehicles per year (assuming a 20 KWh battery system).
The project has two overlapping phases. Phase I, supported by a Department of Energy Reinvestment and Recovery Act grant, is scheduled to begin in May 2010, has a targeted capacity of 600 million watt hours and will employ up to 320 people at steady state. Phase II, which could be initiated as early as 2011, will add an additional 600 million watt hours, and incorporate the battery pack assembly equipment and production.
“The lithium ion battery market represents an emerging and potentially large global market opportunity for Dow Kokam, Midland, and the state of Michigan especially in the competitive realm of clean energy technologies,” said Ravi Ramanathan, Vice President of Business Development and Government Affairs. “Dow Kokam is positioned to meet the next-generation needs of the automotive industry for innovative energy and materials solutions that contribute to the success of the industry, to the economies that depend on it and to the growth of our business.”
About Dow Kokam
Dow Kokam was established in 2009 to develop and manufacture advanced energy storage technologies for the transportation and other industries. Dassault joined The Dow Chemical Company and TK Advanced Battery LLC as owners of the company when Dow Kokam acquired Société de Véhicles Electriques in January 2010.
Dow Kokam brings technologically advanced and economically viable battery solutions to the U.S. automotive industry. Dow Kokam represents the first battery manufacturer to combine the viable, scalable technology, market franchise, manufacturing expertise and market knowledge necessary to become the clear partner of choice for automakers and suppliers.
About the Michigan Economic Growth Authority
MEGA was created in 1995 to promote high quality economic growth and job creation. Since its inception, MEGA Tax Credits have generated billions in private investment and created in excess of 120,000 jobs.
The objectives of the High-Tech MEGA program are to promote the development of high-tech businesses in both traditional and emerging industries by providing a tax credit against the Michigan Business Tax (MBT) and assist in the diversification of Michigan’s economy.