Boston Power Puts Battery Factory On Hold
Boston Power Inc. may put its plans to build a large factory in Auburn for building hybrid and electric car batteries on hold after recently learning it did not win $100 million in federal stimulus money.
Two weeks ago, the U.S. Department of Energy announced $2.4 billion in energy stimulus grants for 48 projects, but Boston Power, which had applied for the funds, was not selected.
Boston Power was counting on the stimulus funds to help build the new plant.
“I am a huge proponent of bringing manufacturing jobs back to America, and the clean, green sector is a fun chapter in our history,” said Christine Lampe-Onnerud, Boston Power’s CEO. “We’re very disappointed that at least in the short-term we’re not part of that. We are well-funded and we could have started working on it the day after the announcement.”
But Lampe-Onnerud as well as state and federal officials have not given up trying to get additional funding.
The company has also applied for U.S. Department of Defense funds that have been set aside for speeding new technology to the marketplace.
If the company does not win the defense money or other grants, it will have to continue to expand its manufacturing overseas, according to Lampe-Onnerud. Boston-Power already has one manufacturing location in China and is building a second facility in Taiwan.
In June the company and state officials announced a plan to build the 455,000-square-foot Auburn factory, which was estimated to eventually employ 600 workers and provide indirect work for as many as 2,500 more.
Although Boston Power did not receive energy stimulus money, Watertown-based A123 Systems was awarded $249.1 million to begin building battery factories, the first of which will be sited in Livonia, Mich. The company makes nanophosphate cathode-powered batteries.
The government has been criticized in this case for giving grant awards to companies that are based outside the United States.
However, Lampe-Onnerud is not voicing that concern.
“I think the people who were choosing the grants really tried to the best that they could,” she said.
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