US automakers get piece of $2.4 bln in battery grants
* Obama envisions US battery manufacturing base
* 48 projects in 25 states will share grants
* US auto companies in ventures for battery development (Adds grant details, state breakdown)
By John Crawley and Ayesha Rascoe
WASHINGTON, Aug 5 (Reuters) - Companies working with Ford Motor Co (F.N), Chrysler Group and General Motors Corp [GM.UL] received more than $600 million on Wednesday to further development of batteries for hybrids and electric cars.
The awards were part of $2.4 billion in grants being announced by the Obama administration as part of its "Green" economy vision and efforts to enhance U.S. energy independence.
Obama envisions the grants will build momentum for developing plants for making advanced batteries and drive systems, creating "tens of thousands of jobs" as part of Obama's "Green" economy strategy, officials said.
"If we want to reduce our dependence on oil, put Americans back to work and reassert our manufacturing sector as one of the greatest in the world, we must produce the advanced, efficient vehicles of the future," Obama said in Indiana.
Almost all battery manufacturing for advanced technology vehicles is currently based in Asia.
White House economic and Energy Department officials said 48 projects in 25 states would receive money under a deal that requires winners to match the federal investment.
Michigan, hard hit by the dramatic contraction of U.S. auto production, led all states with 11 grants. Indiana was second with seven, officials said. Academic interests, utilities and research cooperatives also applied for funding.
U.S.-based companies will receive $1.5 billion to produce batteries and components and expand battery recycling capabilities.
An additional $500 million will go to producing electric motors and other drive train components.
The final $400 million will pay for testing plug-in hybrids and all-electric vehicles.
Compact Power Inc, on behalf of South Korea's LG Chem Ltd, received $151 million to produce battery cells for GM's highly touted Chevrolet Volt plug-in, due out in 2010.
Johnson Controls Inc (JCI.N) and France's Saft Groupe SA (S1A.PA) will supply a complete battery system for Ford's first plug-in hybrid, due in 2012. Johnson Controls received $299 million.
A123 Systems, which is working with Chrysler, received $249 million.
Delphi Automotive Systems will receive $89 million to expand existing electric drive components for passenger and commercial vehicles.
KD Advanced Battery Group, a venture that includes Dow Chemical Co (DOW.N), Kokam America Inc and Townsend Ventures LLC, received $161 million.
GM received an additional $105 million to produce an electric rear-wheel drive system, and Ford received $62 million for a related transmission project.
The battery grants are separate from Energy Department loans aimed at helping U.S. automakers retool factories for making more fuel-efficient vehicles. (Reporting by John Crawley, Julie Vorman and Ayesha Rascoe; Editing by Gunna Dickson, Leslie Gevirtz)
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