This will help it grow even faster. In what may be an even bigger deal, four different companies announced plans to invest more than a billion and a half dollars in advanced battery manufacturing operations in Michigan. If all this actually happens -- and this is still something of a big if -- and if electric powered and hybrid cars are really going to be the vehicles of the immediate future …
This will be huge. What it would seem to indicate is that the next generation of a hopefully resurgent auto industry, or large parts of it, will be located in Michigan. If virtually all the batteries for the new cars are produced locally, it gives us a better shot at keeping assembly plants here, and maybe even attracting new ones.
Now, we must be careful not to get too far ahead of ourselves. We do need to look carefully at what was actually announced.
The best known of these companies is A123 Systems, a Massachusetts-based firm that has been chosen by Chrysler to make the batteries for the electric cars it plans to put on the road.
It plans to start operations in Livonia, and then, to quote Crain’s Detroit Business, “could expand to additional sites in Southeast Michigan, ultimately creating a total of more than 5,000 jobs.”
Initially, however, we are talking about 300 jobs. Now, that’s good news, but not economic reality-changing news. Two major questions remain to be answered.
First of all, we don’t really know if they can work all the bugs out of these batteries before the Chevy Volt and the new Chrysler electric vehicles are scheduled to roll off the line next year.
Engineers say that every so often, maybe in a few cases per million, lithium ion batteries can rupture, ignite, or explode when exposed to high temperatures. It wouldn’t take very many exploding batteries to completely doom these vehicles.
The experts seem confident they can work this out by the time the cars hit the market. We have to hope so - and hope that the new cars are exciting enough, high-performing enough, and priced low enough to appeal to vast numbers of customers.
The more they sell, the more batteries will be needed and, presumably, the more jobs will be created. Both these potential battery plants and the new, $146 million Unity Film studios owe their birth to the state’s skillful and intelligent granting of tax breaks.
Still, it will take time to see how successful these things are. When it comes to Michigan’s economic troubles, to paraphrase Winston Churchill, this isn’t the end. It isn’t even the beginning of the end. But maybe, just maybe, it could be the end of the beginning.
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