A123Systems secures $100M Michigan tax credits

A123Systems has secured more than $100 million in refundable tax credits from the state of Michigan and has selected Livonia as one of the sites where it is planning to base new production plants.

The refundable tax credits issued by the Michigan Economic Development Corporation (MEDC) will help implement A123’s existing strategy to establish Michigan as the manufacturing hub to meet demand from its automotive customer portfolio, which includes 19 vehicle models ranging from hybrid electric vehicles to electric vehicles.

In November, the company was granted $10 million by the state to create a research and development institution focused on advanced lithium-ion batteries for the automotive, defense and alternative energy markets. The Center will be based at the Livonia production facility and work in collaboration with the University of Michigan and Michigan State University on joint research, system design and performance measurement projects.

A123Systems first invested in Michigan when it acquired Ann Arbor based T/J Technologies in 2006. The company later expanded operations by establishing an automotive engineering team that is currently located in a facility in Novi.