Valence Technology, Inc. (NASDAQ: VLNC), a U.S.-based manufacturer and supplier of lithium iron magnesium phosphate batteries, is seeking federal funds to build a manufacturing facility in Texas for electric vehicle battery components.
The company’s proposed facility would manufacture lithium phosphate cathode material, high-capacity cells and battery packs for electric drive vehicles and other applications.
Valence submitted a grant application to the U.S. Department of Energy (DOE) under the Electric Drive Vehicle Battery and Component Manufacturing Initiative.
Valence is requesting $225 million in federal grant funds over a three-year period and plans to fund the remaining $359.4 million (61.5% of the total project costs) through state and local tax and other incentives.
The annual production capacity of the proposed facility is estimated to be 660,000 battery packs and can be online as early as August 2012, Valence said.
“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, cleantech 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.”
This past March, Valence Technology submitted an application to the Department of Energy’s Advanced Technology Vehicles Manufacturing Incentive Program for low interest loans to help finance the construction of this new lithium iron magnesium phosphate battery manufacturing facility.
Headquartered in Austin, Texas, Valence has facilities in Nevada, China and Northern Ireland.
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