Lithium Battery MakersTo Benefit From Obama Stimulus Plan

The U.S.’s $790 billion economic stimulus plan includes more than $5 billion in loans, grants, and tax credits to help stimulate the development of large-scale domestic production of advanced, lithium-ion batteries for hybrid and electric cars. Although U.S. scientists have  recently been active in developing new materials for lithium-ion batteries, their manufacture now takes place almost entirely overseas, largely in Asia. The economic stimulus plan recently passed by Congress includes $2 billion in grants for manufacturing advanced batteries and up to $2.4 billion in tax credits for building battery plants. In addition, some portion of the $16.8 billion to promote energy efficiency and the development of renewable energy will go toward developing a domestic battery industry, as will a portion of $7.5 billion in loans allocated earlier for the development of advanced technologies in the U.S. automotive industry. The stimulus plan also provides a $7,500 tax credit for people who purchase plug-in hybrid cars, which will indirectly boost lithium-ion battery production. In addition, the plan has set aside $4.5 billion to improve the electric grid, including research into manufacture of advanced batteries for storage of electricity from renewable energy sources.