The contract was awarded under the Recovery Act – Electric Device Vehicle Battery and Component Manufacturing Initiative in August, last year.
Toda America intends to build its manufacturing plant as soon as the site remediation work is completed and regulatory approvals are obtained in the next 1-2 months.
Toda expects to complete Phase 1 and plans to start its operation in February, 2011. The plant will be expanded step by step until 2013, reaching its full manufacturing capacity of 4,000 tons of finished product per year. The total sales volume based on the full capacity operation at the facility is expected to be around $130m.
Junichi Nakano, president and CEO of Toda America, said: “This is a critical step for Toda Kogyo Group in our quest to maintain our global leadership as the premier supply chain partner to both battery and electric vehicle manufacturers around the world.”
Toda America has been working with the State of Michigan and the City of Battle Creek to finalize various agreements and financial incentives for the manufacturing plant in Battle Creek based on the planned job creation and capital investment.
The project is expected to add 50-60 direct new jobs, and up to a total 148 new jobs including 91 indirect jobs, according to the MEDC.
David Han, consultant of Toda and president of Turtlerock Greentech, said: “The Toda project contributes triple benefits of strategic acceleration of US electrification of vehicles, immediate creation of green tech jobs, and redevelopment and reuse of existing industrial land in support of urban revitalization.”
