Compact Power, Inc.'s plans to build a $303 million manufacturing plant for advanced lithium-ion batteries in Holland moved another step forward this month when federal officials released its draft environmental assessment for a 30-day public inspection.
The U.S. Department of Energy released its 133-page report Jan. 8 in its efforts to further evaluate the potential environmental impact the 800,000-square-foot plant might have on the eyed 80 acres of vacant property. Under review is the site on the northeast corner of East 48th Street and South Waverly Road.
A copy of the draft assessment is available for review at the Holland Herrick District Library or online here.
If all goes well after 30-day review period, the assessment's author, Mark Lusk, the department's National Environmental Policy Act Document Manager, told Rapid Growth Media that he would issue a final report and a "finding of no significant impact" that basically "gives the applicant our environmental go ahead to start the project.
"This still has to be vetted by the financial side of us (DOE)," Lusk says, to ensure the project is backed with sufficient financing. "These things get a lot of scrutiny."
According to the assessment, the plant would employ 450 when fully operational.
"The battery cells would be manufactured and delivered to meet General Motor's performance and production specifications for the Volt, General Motor's first high volume production extended range electric vehicle or plug-in hybrid electric vehicle in the United States," it says.
The DOE would provide $151 million in financial assistance in a cost-sharing arrangement with CPI, one of 30 projects nationwide the department selected last year to receive up to $2 billion in federal stimulus funds, Lusk says.
The funds are part of President Barack Obama's commitment to accelerate the development of manufacturing capacity in America for batteries and electric drive components, as well as the deployment of electric drive vehicles. Michigan companies and institutions were scheduled to receive more than $1 billion, the largest share of grant funding of any state for this development.
CPI is a North American subsidiary of LG Chem, a South Korean firm that's one of the world's largest producers of lithium-ion batteries for automotive hybrid electric vehicles and nonautomotive markets. Formed in 2000, the subsidiary is headquartered in Troy.
If successful, CPI would be the second plant in Holland to produce lithium-ion batteries. A joint venture between Johnson Controls Inc. and French manufacturer Saft is ramping up to produce them as well. That venture is expected to generate 550 well-paying jobs by 2014.
Sources: Mark Lusk, U.S. Department of Energy's National Environmental Policy Document Manager; Draft Environmental Assessment for Compact Power, Inc. Electric Drive Vehicle Battery and Component Manufacturing Initiative Application, Holland, MI
Sharon Hanks is the editor of innovation and jobs news for Rapid Growth Media. She can be reached at sharon@ rapidgrowthmedia.com.
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