Electric Vehicle Readiness

Recent investments in electric vehicle and advanced battery manufacturing give promise that Michigan can lead once again by focusing on the next generation of clean vehicles and advanced automotive technologies. While a number of important steps have been taken to support this transition, additional state policy action is needed to help ensure a growing demand for these products.

In particular:

• Electric Vehicle (EV) and Plug-In Electric Vehicle (PEV) fleet purchasing commitments by the state and other large entities; 
• Financial incentives for the installation of publicly available electric vehicle charging stations; and 
• A Low Carbon Fuel Standard (LCFS) that requires an increasing percentage of lowcarbon fuels (like electricity) be used for powering vehicles within the state. 

Recent policy actions have included approval of special EV rates to encourage off-peak charging and building code updates to facilitate the installation of electric vehicle charging stations.

A Michigan State University-led study found that an LCFS could create up to 11,000 jobs and add more than $3 billion to the state’s economic activity by replacing petroleum imports with fuel produced here in Michigan.

Just a few of Michigan’s recent successes:

• GM’s Chevy Volt has led to more than $700 million in invest ment s at eight manufacturing plants for production of the vehicle and its components. 
• Ford has invested $1 billion to transform its Michigan Assembly Plant from a large SUV factory to a modern car plant to build the all-new Focus starting in 2010 and Focus Electric pure battery electric vehicle in 2011. The plant will also be the production site of future hybrid, plug-in hybrid and full battery electric vehicles, all of which will be built off the company’s new global C-car platform. 
• Johnson Controls-Saft and Korean battery manufacturer LG Chem are investing a combined $550 million funding in lithium-ion battery plants Holland, MI. 
• Dow Kokam, a new lithium-ion battery maker formed by Dow Chemical and two other companies, broke ground in May in Midland, MI, on a $322 million, 400,000-squarefoot plant. It expects to complete the factory in January 2012 and employ 320 people.