Valence Technology (VLNC) Applies For Fed Cash To Build Advanced Battery Plant

Today, Valence Technology (VLNC) joins the ranks of those companies seeking government cash to build advanced battery production facilities.  Just a few weeks ago General Electric announced plans to open an advanced battery production facility in New York and is seeking government funds to help finance it.  Valence is applying for a $225 million grant over three years from the US Dept of Energy under the Electric Drive Vehicle Battery and Component Manufacturing Initiative in order to help build out a facility in Texas that would manufacture lithium phosphate cathode material as well as high capacity advanced cells and battery packs for electric drive vehicles and other applications.  The company would fund the remaining $360 million through state and local tax and other initiatives. The plant is expected to have a capacity of 660K battery packs per year and begin producing in about 3 years.

CEO Robert Kanode commented:

“We’re pulling together infrastructure and suppliers to rally around our high quality, proven battery systems. The multiplier from our success will mean success for the region, attracting industries with next generation technologies. Valence Technology already has the capabilities to produce and deliver large-format energy solutions for electric drive vehicles, hybrids and other applications. Funds from this grant are important to ensure advanced battery jobs and advanced technologies grow and thrive on U.S. soil.”

“With significant incentives projected from the state, county and city governments, Leander, Texas, was chosen as the primary site for our advanced battery manufacturing plant,” added Goolsby. “Both State and City officials have demonstrated incredible support for the plan to provide up to 2,700 new, high-tech jobs in the Central Texas region by 2012 and up to 4,000 jobs by 2016. The State of Texas, Williamson County and the City of Leander are projecting and seeking approval of more than $150 million in incentives over a ten-year period.”

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