GE to Build $100M Battery Factory in NY

GE (NYSE: GE) announced Tuesday a major investment in sodium-based batteries, a technology that will expand the company’s energy storage portfolio.

GE said it believes the new battery business has the potential to become a $1 billion business over the next decade. 

GE Transportation plans to build a $100 million battery manufacturing plant in Upstate New York that will serve as the main manufacturing facility for batteries to be used in rail, marine, mining, telecommunications and utility sectors.

GE said it has invested more than $150 million to develop advanced battery technologies, including the sodium-based chemistry battery that will provide energy storage for a variety applications, beginning with hybrid locomotives. Other projects include a hybrid mining truck and electric-powered tug boats.

In addition, GE envisions the batteries being used as backup power supplies for cell phone towers and data centers.

The new facility is expected to created 350 energy storage jobs and will produce approximately 10 million battery cells each year when the facility is at full capacity. The goal is to begin producing batteries by mid-2011.

The announcement coincides with GE’s submission this week for federal stimulus dollars from the U.S. Department of Energy. GE said it hopes to secure additional federal funding for the new facility later this summer. New York State has already pledged more than $15 million in incentives.

GE’s also owns a $55 million stake in lithium-ion battery maker A123 Systems Inc, which will supply batteries to Chrysler for its next-generation electric vehicles.