Senators Basham, Anderson Applaud Incentive to Build Advanced Battery Facility in Romulus

New Renaissance Zone will allow A123 Systems to continue expanding advanced lithium-ion battery production in Wayne County

LANSING, Mich. –– State Senators Ray Basham and Glenn S. Anderson praised the announcement that yesterday the Michigan Economic Development Corporation approved a 15-year, 75.26-acre Renaissance Zone designation in the city of Romulus where one of A123 Systems’ lithium-ion battery manufacturing facilities will be located. The project is expected to create up to 370 jobs and generate $131 million in private investment.

“This Renaissance Zone is great news for Romulus and Michigan’s economy as a whole,” said Senator Basham. “As Michigan continues to attract clean energy companies because of our strong workforce and economic development programs, we can get our workers back on the job while diversifying our economy.”

A123 Systems plans to locate their future headquarters and production facilities in Livonia, Brownstown, and Romulus, and is expected to invest more than $600 million in the project. This project is part of an ongoing effort to establish Michigan as a leader in new automotive technologies. The Michigan Senate passed legislation in 2008 to create incentives for investment in the development and manufacturing of lithium-ion and other high-tech batteries used to power hybrid and electric cars. Senators Basham and Anderson also supported House Bill 4515 and Senate Bill 319 that further expanded these credits to continue their success.

“A123's investment in advanced battery manufacturing in Michigan is a shining example of how we can bridge our automotive manufacturing heritage with the technology of the future to create jobs and expand our economy,” said Senator Glenn S. Anderson. “The state's continued support of this project will help A123 grow and succeed, putting the people of our community back to work and stimulating our local economy, all while producing cleaner and more efficient vehicles.”

A123 Systems is one of the state's six Centers of Energy Excellence and has entered into a development and manufacturing agreement with Chrysler LLC to provide battery systems for the company's ENVI product line. To learn more about A123 Systems Inc., visit their website: http://www.a123systems.com.

Michigan’s Renaissance Zone program is administered by the Michigan Economic Development Corporation. A Renaissance Zone allows a company operating within the zone to operate free of virtually all state and local taxes over the life of the designation. The MEDC, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on MEDC initiatives and programs, visit the website at www.TheMEDC.org.

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