Lithium-ion facility

Global battery maker Johnson Controls-Saft is set to build its first US manufacturing facility for lithium-ion batteries for hybrid and electric vehicles in Holland, Michigan.

In the project, estimated to cost $220m (£147m), Johnson Controls-Saft will receive a combination of tax credits and incentives from the state of Michigan totalling $148.5m.

The company also plans to apply for a grant through the federal American Recovery and Reinvestment Act (ARRA) in May.

Johnson Controls-Saft opened the world’s first lithium-ion manufacturing facility for hybrid-electric vehicles in 2008 in Nersac, France, where it is currently producing batteries for the Mercedes S-Class hybrid, which will be available to consumers later this year.

Additionally, the company will supply a lithium-ion hybrid battery system for the BMW 7 Series ActiveHybrid available in 2010, for Azure Dynamics's Balance Hybrid Electric system, which will be available in 2010, and for Ford’s first plug-in hybrid-electric vehicle available in 2012.

'This Michigan facility will allow us to serve our global customers and specifically the production contracts we have with Ford and Azure Dynamics,' said Mary Ann Wright, who leads the Johnson Controls-Saft joint venture and is vice-president.