Johnson Controls-Saft, a joint venture of Johnson Controls, Inc. (Johnson Controls) and Saft Groupe SA, is planning to build a cell manufacturing facility for lithium-ion hybrid batteries in Michigan. Michigan governor Jennifer M. Granholm said that the Michigan Economic Growth Authority has granted Johnson Controls-Saft a package to support cell manufacturing. Johnson Controls-Saft will receive a mixture of tax credits and incentives from the state of Michigan totaling $148.5 million.
Subject to final state and local incentives, Johnson Controls-Saft will utilize an existing Johnson Controls facility at its Meadowbrook 48th Street site in Holland, Michigan.
Battery technology is strategically important to the future of the U.S. automotive industry and the economy at large, stated Alex Molinaroli, president of Power Solutions for Johnson Controls. Our first U.S. plant will bring about 500 jobs to Michigan, and many additional jobs through suppliers and the businesses these employees will support. It is a key element of our broader strategy and commitment to the hybrid vehicle industry in North America.
Johnson Controls-Saft has opened a lithium-ion manufacturing facility for hybrid electric vehicles in 2008 in Nersac, France, where it is presently in production for Mercedes S-Class hybrid, which will be available to the consumers in 2010. In addition to this, Johnson Controls-Saft will deliver the lithium-ion hybrid battery system for BMW 7 Series ActiveHybrid available in 2010, Azure Dynamics Inc.’s Balance hybrid electric for commercial vehicles available in 2010, and Ford Motor Company’s first plug-in hybrid electric vehicle available in 2012.
This Michigan facility will allow us to serve our strategic global customers, and specifically the production contracts we have with Ford and Azure Dynamics. It will also allow us to serve other important customers as the hybrid and electric vehicle industry continues to gain a foothold in the United States, stated Mary Ann Wright, who leads the Johnson Controls-Saft joint venture and is vice president and general manager of Johnson Controls hybrid business.
Ford is pleased that Johnson Controls-Saft has been selected by the State of Michigan to receive incentives, stated Susan Cischke, group vice president Sustainability, Environment and Safety Engineering for Ford Motor Company. They are well positioned to become a key manufacturer of advanced lithium-ion batteries for electrified vehicles. We have partnered with Johnson Controls-Saft to supply the lithium-ion batteries for our plug-in electric vehicle coming in 2012, as part of our overall electrification strategy. We see this as an important step to building a domestic advanced battery industry.
The cost to repair the Holland, Michigan, facility for the lithium-ion automotive battery production is about $220 million. It will have an initial capacity of 15 million lithium-ion cells.
Johnson Controls is an important Michigan employer with a successful long-term relationship with the automakers, stated Governor Jennifer M. Granholm. Their new hybrid battery plant will bring valuable jobs to the state as well as boost our strategy to make Michigan the advanced-battery capital of the world.
Molinaroli added, Johnson Controls has a long and proud history of manufacturing in Michigan. This plant is a demonstration of our commitment to our strong customer relationships there as well as our nearly 10,000 dedicated employees.
The Michigan facility is a key step in Johnson Controls’ ongoing commitment to build a manufacturing infrastructure for the hybrid and electric vehicles in US. With its demonstrated track record and the endorsement from the strategic customers like Ford Motor Company and Azure Dynamics Inc., the company will also apply for a funding through the federal American Recovery and Reinvestment Act (ARRA) in May 2009.