Posted: 11/28/11 05:40 PM ET
Jaclyn Trop/ The Detroit News
Southeast Michigan is one of 20 regions from around the country picked by the federal government for economic growth grant money, Gov. Rick Snyder and an Obama administration official announced Monday.
The federal Jobs and Innovation Accelerator Challenge selected Southeast Michigan from among 146 applications for its potential in alternative energy manufacturing.
The $2.1 million federal grant will help create an "economic cluster" of so-called clean technology manufacturing that is expected to generate jobs, business and exports for the region.
The Michigan Economic Development Corp. said it will match up to $500,000 of the federal funding with money of its own for the Southeast Michigan Advanced Energy Storage Systems Initiative.
Michigan is home to more than 35 advanced battery companies and suppliers for battery systems and electric vehicles, more than any other state, according to the Michigan Economic Development Corp.
The Michigan companies have committed more than $5.7 billion in capital investment and expect to create 20,000 new jobs in the next 10 years, according to the MEDC.
Michigan has given solar and lithium-ion battery manufacturers tens of millions of dollar in state tax incentives in recent years, but both industries are building more products than there is demand for, according to industry reports.
The worldwide manufacturing capacity of lithium-ion batteries for electric vehicles will greatly exceed supply unless demand by automakers increases significantly in the short run, according to a September report by Bloomberg New Energy Finance.
Energy Conversion Devices Inc., the Auburn Hills maker of solar panels and lithium-ion batteries, has been trying to sell its battery operation. And its losses grow since demand for solar panels in Europe has dried up and Chinese companies have offered lower-priced alternatives.
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Source: Huffin Tonpost
