President Obama announced $2.4 billion in new grants for the development of electric cars. He linked it to an innovation agenda that will create tens of thousands of jobs all across America. He spoke at an RV plant in Elkhart County, Indiana (a place he has visited 4 times since 2008). The unemployment rate there is 16.8%. Interesting historical point is that Elkhart was the home base for an electric car company start-up in the 1970s called ELCAR.
Companies in Indiana and Michigan are getting the bulk of the Department of Energy grants, which are going to makers of batteries and other components of electrically powered vehicles. Warrenville, Illinois-based Navistar will get a $39 million grant to manufacture 400 electric-powered trucks. The grants will go to companies in more than 20 states, including $299 million to Johnson Controls and $249 million to A123 Systems for battery projects at facilities in Michigan and Oregon. GM, Ford and Chrysler will get parts of more than $400 million in grants to Michigan based auto makers. The funding includes $1.5 billion for battery manufacturing and $500 million for U.S.-based companies making electric motors and drive-train components, according to a White House news release. An additional $400 million will be used to purchase hybrid and electric vehicles for testing and training and for creating systems to charge vehicle batteries. A lot of the funding is going to established incumbents. Some of the action needs to go to the entrepreneurs and upstarts with promising technology to enter the field down the road. Click here (pdf) for a full list of the grant winners.
Egils Milbergs commented: "We are perceptibly lagging our global competitors in the burgeoning market for electric cars and related infrastructure. We are sourcing much of the latest developments from overseas. The federal government is spending more on the Cash for Clunkers program then on electrifying our transportation system. Which is the more strategically important? Let's strive to do more than R&D projects and test demonstrations. Innovation is not just about invention. It is about bring value to the customer. We need to build a strong US based electric car design, manufacturing, financing, distribution and infrastructure support system as well. If we understand this principle we will create jobs once again in the US auto industry and beyond."
Thanks for sharing... I can't wait to get a electric car myself...
We're just waiting for a few more to get on the market and it will be time to replace our Honda... I'm hoping that the volt will be a good choice or the prius... the rebates are definitely a great step in putting more people in these cars.
If just saw this today as well (hybrid government rebate - http://www.hybridmile.com/news/government-rebate-hybrid/) I hope that these get extended into 2010 and really they should be available till every single gas car is off the road.
Posted by: Bart | August 10, 2009 at 10:16 AM
That would be a shame if the US wouldn't have a strong manufacturer for the electric car! I mean- the US cars were always well known around the world but even more important so many Americans drive American cars! It would be a shame to loose such a market! And YEY for teh producing and actually doing it and cut down on the innovation demonstrations!!
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Cant wait to get electric my self!!!
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Lets hope this will bring some good jobs.
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