Today, the nation's largest lithium-ion battery factory will open in Livonia, Michigan.
This investment by A123 Systems will create jobs, help power our economy into a leading role in the 21st century economy, and provide real-world proof that if we work together - as A123 and the state and federal governments did - we can lead the new energy economy.
For the last two years, the Obama Administration and Congress have been intensely focused on ways the federal government can boost green jobs. Advanced batteries, made in America, can power our new economy. The potential is immense, but it will not happen automatically. We must act, or we'll cede the leading role to other nations.
For too long, we've been behind the curve - handicapped by those who feel the private sector should go it alone. Even as we've made enormous strides these last few years, we're still playing catch-up.
The notion that there is no role for the public sector to play has been flatly rejected by countries around the world, and they are racing ahead because they know that the best way to power our economy is with technologies that enable us to be more innovative and prudential.
Right now, nearly all of the batteries that power America's hybrid cars are made overseas. In the coming months, GM is bringing the Chevy Volt - an electric-gas hybrid - to the market. It's great news for the American automotive industry. But, initially, the battery packs are being supplied by South Korea, due to the fact that for years, the South Korean government has had a strategy to financially support battery technologies and local industry - part of a $12 billion commitment their government has made to advanced batteries.
We must not trade an addiction to foreign oil for an addiction to foreign batteries.
Over the last two years, we've taken steps to begin to close the gap.
We've combined private sector investment with accelerated public support for advanced battery development and manufacturing. In a word, we've created a private/public partnership.
The Recovery Act invested $2.4 billion in advanced battery and electric vehicle projects, the largest single investment in advanced battery technology anywhere in the world.
We are already beginning to see the results of this investment. Just look at today's unveiling in Livonia.
In 2009, Michigan Governor Jennifer Granholm signed into law legislation providing up to $700 million in refundable tax credits to encourage companies to develop and build batteries in Michigan.
Those actions came on the heels of Congress and the President working together on the Recovery Act's efforts to jump start battery manufacturing.
A123 received $249 million from the Recovery Act, and $238 million in state incentives. We formed a partnership between the private and public sectors, and we're opening a plan today because of it.
The alternative is to go back to sitting on our hands and let other countries win the global race to develop and manufacture advanced energy technologies. We can't afford to let that happen.
The new energy economy is to America's future. Consider the stakes - for jobs, for innovation, for lowering costs, for making America energy independent, for protecting our environment, and for maintaining our status as leader of the world's economy. The stakes are clear.
Now, we need to make clear that the government is a full, active, & effective partner in achieving those ends.
Working together, public sector and private sector, we can renew our economy and power America's future. Today, with the new A123 plant in Michigan, we're making a great start.
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