A123Systems Awarded $100M in Michigan Tax Credits

A123Systems announced today it has secured more than $100 million in refundable tax credits from the state of Michigan and has selected Livonia as one of the sites where it is planning to base new production plants.

The refundable tax credits issued by the Michigan Economic Development Corporation (MEDC) will help implement A123’s existing strategy to establish Michigan as the manufacturing hub to meet demand from its growing global automotive customer portfolio, which includes the recently announced Chrysler partnership.

This announcement follows the designation of A123Systems as a Michigan Center of Energy Excellence. In November, the company was granted $10 million by the state to create a research and development institution focused on advanced lithium-ion batteries for the automotive, defense and alternative energy markets. The Center will be based at the Livonia production facility and work in collaboration with the University of Michigan and Michigan State University on joint research, system design and performance measurement projects.

A123Systems first invested in Michigan when it acquired Ann Arbor based T/J Technologies in 2006. The company later expanded operations by establishing an automotive engineering team that is currently located in a facility in Novi.

"Today is truly a milestone for A123Systems, the state of Michigan and everyone interested in creating new markets where American innovation creates sustainable job growth in engineering, research and manufacturing,” said David Vieau, A123Systems’ president and CEO. “With the support of the state’s leadership and highly-skilled workforce, we expect that our planned new facilities in Michigan will serve as a global product center, powering a new generation of cleaner, more fuel efficient cars and trucks.”

A123 was born out of the research labs of the Massachusetts Institute of Technology and was funded initially with a $100,000 grant from the US Department of Energy in 2001.

A123Systems develops and manufactures advanced lithium-ion batteries and battery systems for the transportation, electric grid services and portable power markets.

Website: http://www.a123systems.com     
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