At the coal-face industry is about jobs, and two lithium-ion battery firms in the US state of Michigan are feeling the effect of not being able to secure employment this week.
Firstly in Holland, Johnson Controls is being hit in the pocket to the tune of $3.7million and, financially more important for the multi-billion dollar firm, lose its Renaissance Zone tax exempt status in the state, report a number of Detroit news outlets.
The moves are a direct result of not creating the projected 400 jobs at its Holland lithium-ion plant, which it reportedly invested $175 million to open.
The company has to pay the cash to the mid-western state after receiving $75 million in incentives from a 2009 state program designed to push automotive advanced battery investment.
The Michigan Economic Development Corp has since amended its previous agreement with JCI, and now calls for no additional job cuts or an additional $22.5million investment by 2018, reported Crain’s Detroit Business.
If it fails to maintain its current 225 employment level at the plant it must pay back an additional $8.75 million.
Over in Midland lithium-ion battery maker XALT Energy is laying off around 100 employees, a third of its workforce, reports mlive.com.
The company is dealing with contract delays by customers of its lithium-ion batteries, said the news outlet.
The company laid off 35 workers in September, this despite signing a $1billion deal to supply lithium titanate batteries to Hybrid Kinetic Group (HK Group) back in March. See more here.
But its not all bad news for battery firms in the state after LG Chem announced it will be ramping up lithium-ion battery production at its facility in Holland.
“The conversation about lithium-ion battery manufacturing in North America isn’t about what’s going to happen in the future, it’s about what’s happening today,” said Nick Kassanos, president of LGCMI.
Adding: “High quality, affordable electric vehicles are today’s story.”
LG’s $303 million facility is one of the fastest-growing EV battery plants in the US, and will supply battery cells for the 2016 Chevrolet Volt (Gen 2).
