DOE to spend $2.4 billion on manufacturing capacity

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The U.S. Department of Energy last month announced that it will provide $2.4 billion in grants for 48 projects to expand the manufacturing capacity for advanced batteries and electric vehicle drive components and the deployment of electric vehicles. The funds, which are aimed at reducing greenhouse gas emissions and the dependence on oil, were included in the American Recovery and Reinvestment Act and were awarded through a competitive process.

Obama administration officials announced the funding Aug. 5 at various venues across the United States. President Obama himself spoke at a Navistar facility in Elkhart, Ind. Navistar will receive $39.2 million to develop, validate and build 400 advanced-battery electric delivery trucks. The trucks, which will have a gross vehicle weight rating of 12,100 lbs., will have a range of 100 miles. Navistar is in the process of finalizing a joint venture with Modec Ltd. of the United Kingdom to produce and sell all-electric Class 2c-3 commercial vehicles in North, Central and South America.

“If we want to reduce our dependence on oil, put Americans back to work and reassert our manufacturing sector as one of the greatest in the world, we must produce the advanced, efficient vehicles of the future,” Obama said. The Obama administration has set a goal of 1 million plug-in hybrid vehicles by 2015.

About half the grant funds – $1.25 billion – went for increased production of advanced batteries, especially those used in hybrid and electric vehicles. Another $235 million supports production for suppliers of advanced battery manufacturers.

Manufacturers of electric drive components received $465.1 million to support production capabilities. Notable recipients include Allison Transmission, which received $62.8 million to increase its capacity to build hybrid systems for commercial trucks, as well as General Motors, Delphi Automotive, Ford Motor Co. and Remy. Another $32.3 million in grants went to suppliers of electric drive subcomponents.

Navistar’s $39.2 million grant was included in nearly $325 million awarded for deployment of advanced vehicle electrification. Of that total, Phoenix-based Electric Transportation Engineering Corp. received $99.8 million to demonstrate with Nissan up to 5,000 Nissan electric vehicles with a 100-mile range. The deployments would be in Arizona, California, Oregon, Washington and Tennessee. Chrysler received $70 million to deploy 220 advanced plug-in hybrid-electric pickups and minivans at 11 fleets.