DOE Report: Recovery Act Boosts Advanced Vehicle Investments
July 21, 2010
President Obama speaks July 8 at Smith Electric Vehicles plant that has benefitted from the Recovery Act.
DOE released on July 14 a new report on the economic impact of American Recovery and Reinvestment Act investments in advanced batteries and vehicles. "Recovery Act Investments: Transforming America's Transportation Sector" documents how Recovery Act funds are being matched with private capital to create new jobs, help construct new plants, add new manufacturing lines, install electric vehicle charging stations nationwide, and help build the emerging domestic electric vehicle industry from the ground up.
Companies have matched—at minimum—dollar for dollar the $2.4 billion in Recovery Act seed money for advanced battery and electric vehicle grants. Other highlights of the investments include increased battery production capacity, lowered battery costs, and more vehicle charging locations. The United States will have the capacity to produce 20% of the world's electric batteries by 2012 and up to 40% by 2015 because of the investments. All nine new battery plants that will open as a result of Recovery Act investments have started construction, and four of those will be operational by the end of the year. In addition, 21 other plants will make battery or electric vehicle components with the help of Recovery Act grants. Before the Recovery Act, high battery costs meant a car with a 100-mile range would need a battery that cost $33,000. Now, higher-volume domestic manufacturing could bring the cost of such a battery down to $16,000 by the end of 2013 and to $10,000 by the end of 2015.
The report was released prior to President Obama's July 15 visit to Compact Power in Holland, Michigan. Compact Power matched more than dollar-for-dollar the $151 million Recovery Act grant awarded it last August. The company's new plant will manufacture batteries to support 52,000 Chevy Volts a year and will supply batteries for the new electric Ford Focus. See the DOE press release and the full report (PDF 341 KB). Download Adobe Reader.