Obama calls new battery plant a sign of recovery

Fri, Jul 16, 2010    to del.icio.us

HOLLAND — A new plant in Holland that will build batteries for electric vehicles is a sign that Michigan is on its way to economic recovery, President Barack Obama said during the plant's groundbreaking ceremony on Thursday.

Click to enlarge
"This is about more than just building a new factory," Obama said. "It's about building a better future for this city, this state and this country."

Compact Power's plant will build the batteries that power the Chevrolet Volt and the electric version of the Ford Focus. A subsidiary of LG Chem Ltd., Compact Power was able to build the factory after receiving a $151 million grant made available through the Recovery Act.

Construction and operation of the plant is expected to create hundreds of jobs in the Holland area, which is good news for the Midwest, Obama said.

"It will be a boost to the entire region," he said.

The Compact Power plant is the last of nine advanced battery factories to begin construction as a result of the government grants, Obama said, and is an example of how the government has invested in clean energy programs in an effort to grow the economy.

"We've aimed to grow our economy by harnessing the innovative spirit of the American people," he said.

Through programs such as the grants, the government hopes to encourage the private sector to grow and hire more workers, Obama said.

"Government can't generate the jobs or the growth we need by itself," he said. "Our goal has never been to create a government program but rather to unleash private sector growth and we're seeing results."

Michigan is seeing that growth, said Gov. Jennifer Granholm, who was also present at the ceremony. Across the state, 62,000 jobs will be created by the manufacture of batteries, their components and electric cars. It will all help transform the state "from the Rust Belt into the Green Belt," Granholm said.

According to Obama, until a few years ago, only about 2 percent of batteries for advanced electric and hybrid vehicles were made in the United States. But with new factories such as the one in Holland, the U.S. could have up to 40 percent of the world's capacity within five years.

This means manufacturing jobs will stay in the U.S. instead of going overseas, the president said.

"So when you buy one of these vehicles, the battery could be stamped 'Made in America,' just like the car," he said.