The rush to the White House is on as automakers, battery makers, and other suppliers have flooded Washington in search of funding. Sound familiar, asking Washington for money has become commonplace today, but this is a little different. Washington has agreed to give out money and lots of it to those who fit the description.
The federal government through the Department of Energy has agreed to give out $2.4 billion in funding to create a battery supply infrastructure in America for future electric and plug-in vehicles. The funding is aimed at providing companies a chance to sort of get a head start.
Well the days of accepting applications for the money are now over and 165 companies are all in the running for the money. From huge companies such as GE to smaller companies such as A123 Systems, everybody seems to want in.
The recipients of the money and details regarding how much a company gets will be in as early as the end of July. Some states including Michigan, Kentucky, and Massachusetts have also put in applications for the money.
Now the choice is in the hands of the Department of Energy as they pile over the applications. They will also have the task of possibly selecting a state to crown as the hub of car batteries.
Analaysts predict the current $9 billion dollar a year car battery market could expand to $150 billion a year by 2030 and the race to be the largest battery producer is on.
We will update you when the Department of Energy makes their selections.
Source: Wall Street Journal