An already big day at Cobasys got even bigger on Dec. 4.
During the day, the company, a leading supplier of advanced integrated energy storage solutions located at 3740 S. Lapeer Rd., announced that they had been chosen to provide their NiMHax Nickel Metal Hydride battery system for GM’s 2007 Saturn Aura Green Line.
That night, Cobasys was on the agenda at the Orion Township Board meeting, where their Industrial Facilities Exemption Certificate (IFEC) was amended to reflect an extra $2 million of growth for the company in 2005.
The IFEC is essentially a tax-abatement for additional new personal property to be installed at the Cobasys facility.
‘They’re expanding, which is good news because they’re exceediing expectations set back in 2004,? said Township Supervisor Jerry Dywasuk.
The board approved an initial application in May of 2004 for $4.4 million, but Cobasys? 2005 property tax return listed $6.4 million of costs, meaning the certificate agreement needed to be amended.
The company’s request was for ‘equipment not considered/covered in the original application.?
The exemption amendment taken by the board covers 2005 only, with subsequent purchases exempt under the NextEnergy program.
The IFEC agreement runs through December of 2016.
‘Effectively, the original contract was for two years of construction time and a 10 year extension,? Dywasuk said.
Cobasys came to the Orion in 2005, when their three Troy locations were consolidated into a 80,000 square foot building in the southern part of the township. The building has since expanded to 97,000 square feet.
The company is a joint venture between Chevron Technology Ventures LLC (a subsidiary of Chevron Corporation (NYSE:CVX) and Energy Conversion Devices, Inc. (NASDAQ: ENER).
In the township, Cobasys currently has 200 employees, with another 20 positions, mainly engineers and software programmers, expected in 2007.
‘They’re spending money in the community, involved in the community, just a good corporate citizen,? Dywasuk said.
A 2007 expansion is being contemplated by Cobasys, which is the largest battery testing facility in North America.
The Saturn Aura Green Line, a mid-size sedan that will be available to consumers in the spring of 2007, features the same hybrid system that powers the Saturn VUE Green Line SUV.
Cobasys was previously awarded the contract for the VUE system, which launched earlier this year, and marked General Motor’s entry into the hybrid passenger car market.
The Aura Green was unveiled at the Los Angeles Auto Show a couple of weeks ago.
On the Aura Green, the Cobasys battery system will deliver a 25 percent fuel economy improvement over the base Aura XE model.
Both the VUE and Aura hybrid systems provide an electric power assist during acceleration, increased fuel economy, fuel cut-off during deceleration and the capability to capture electrical energy through regenerative braking.
For more information about Cobasys, or the NiMH battery system, visit www.cobasys.com.