Valence Technology Inc., a battery manufacturer, is eyeing a production facility in the state of Texas to meet the demand of the U.S. hybrid and electric vehicle market.
Valence is a leading overseas producer of lithium iron magnesium phosphate batteries, but they are hoping to expand production in the U.S. To that end, they have applied for $225 million in grants from the federal government through the Electric Drive Vehicle Battery and Component Manufacturing Initiative the program we have talked about several times and refer to as DOE funding.
They hope to receive the grant and combine it with additional incentives of $359 million from state and local governments. The money will allow Valence to build a production facility in Leander, Texas by 2012. They expect to employ 2,700 workers initially and add about 1,300 additional workers by 2016.
We will update you if Valence is approved for the grants and provide additional details as they become available.
Source: Valence Technology