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Advanced Lithium Ion Phosphate Battery System for Army Combat Hybrid HMMWV and Other Army Vehicle Platforms

Press Contact: 202/225-4071 (office)

Project Name:	Advanced Lithium Ion Phosphate Battery System for Army Combat Hybrid HMMWV and Other Army Vehicle Platforms
Project Address:	3850 Research Park Drive, Ann Arbor, MI 48108
Amount Requested:	$3,000,000
Federal Department or Agency:	Department of Defense; Research, Development, Test And Evaluation, Army
Individual or entity requesting this appropriation:	A123Systems, Inc
Value to Michigan’s 15th Congressional District and the American taxpayer:
Global economic growth, global political conflict and escalating exploration and production costs drove oil prices to record highs in the summer of 2008, increasing market demand for innovative energy alternatives that can help reduce dependence on oil. While the sudden decrease in oil prices underscores the volatility in the current economic environment, it is also the perfect opportunity to implement policies and invest in the areas that will prepare the nation for the inevitable price increases that will occur when the economy recovers. Meanwhile, heightened concerns about global warming and climate change are giving rise to stricter environmental standards and stronger regulatory support for alternative energy sources that are not harmful to the environment. The use of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and electric vehicles (EVs), as well as the greater integration of renewables, all hinge on having advanced battery technology. Unfortunately, there is currently no high volume U.S. advanced battery manufacturing capability: Asia dominates due to lower costs and deep government subsidies to develop and manufacture what in many cases was initially American technology. A secure domestic supply of advanced batteries is essential for growth of the electric vehicle industry. A123's innovation enables an American battery industry to take root, as it is not only a cost competitive energy product for new applications, but is also one which can potentially be highly automated, thereby reducing the reliance on low cost labor. The application of lithium ion batteries for new, emerging markets such as electric, hybrid electric, and plug in hybrid electric vehicles, storage for solar and wind, grid stabilization and defense requirements, provides an opportunity for an American battery industry to be established. The benefits are significant and broad in reach: US economic profit, greater national energy independence, and an improved environment.

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