A123 Systems opens new lithium-ion battery factory in Detroit suburb of Livonia

A123 opens new battery factory in Detroit suburb

LIVONIA, Mich. — Battery maker A123 Systems Inc. opened a large lithium-ion battery factory in the Detroit suburb of Livonia on Monday.

The factory will expand the Watertown, Mass.-based company’s manufacturing capacity by up to 600 megawatt hours when it’s fully operational by the end of 2011, A123 said in a statement.

The plant now employs about 300 people.

A123 said the 291,000-square-foot factory is the largest lithium-ion battery plant in North America. The opening comes one year after A123 got a $249 million grant from the U.S. Energy Department, part of the $814 billion economic stimulus program.

“Over the next several years, we expect to create thousands of jobs in greater Detroit and plan to continue our expansion in the area as we do our part in helping the U.S. emerge as a global leader in the production of advanced lithium-ion batteries,” President and CEO David Vieau said in a statement.

A123 also plans to open a battery coating plant in nearby Romulus.

The company says its list of customers includes BAE, Eaton, Fisker, Navistar, Shanghai Automotive Industry Corporation (SAIC) and other auto and heavy-duty vehicle makers.