As interest grows in lithium-ion batteries for hybrid and electric vehicles, Honeywell

International's Buffalo laboratory will play a key supporting role in advancing the battery

technology.

The Peabody Street site will benefit from a $54 million joint investment by the federal

government and Honeywell in producing electrolyte salt, a critical component of lithium-ion

batteries.

The U.S. Energy Department announced last summer that Honeywell was chosen for a $27.3

million matching grant for the project.

Honeywell will invest an equal amount, and the company Monday marked the signing of an

agreement with the Energy Department for the work.

The project will provide a boost to the Peabody Street location, which employs about 135

people and has earned a reputation as a research and development hub since opening 55 years

ago. Six permanent jobs will be created to handle the new work. A "sample plant" will be built

in the "pilot" plant, where LiPF6 will be tested to ensure it meets customer requirements and

determine when it is ready for mass production.

Honeywell will likely build a full-scale production plant for the electrolyte salt in

Illinois, said Jay Kelly, the site leader. The Buffalo location focuses on research and

development.

Most of the combined $54 million in federal and Honeywell funds will be spent on the full-

scale production plant, "but there will be a significant portion of that spent here in

Buffalo, both for construction and operation of the sample plant," Kelly said. He did not

specify a dollar amount.

Honeywell expects to become the first domestic supplier of LiPF6, which it will sell to

battery makers, Kelly said.

The Buffalo site is credited with creating a way to make the highest purity LiPF6 with the

least amount of waste.

Construction of the sample plant is expected to start later this year, and it should be

fully operational in the first quarter of next year, Kelly said.

The $27.3 million federal grant comes from stimulus funds.

The federal government is committing $2 billion to support the development of advanced

electric drive vehicles to help cut fuel consumption and reduce greenhouse gas emissions.

Those vehicles will require batteries that are small, lighter and more efficient.

Lithium-ion batteries already are used in everything from laptops and cameras, to cell

phones and power tool

The Chevrolet Volt and Nissan Leaf, two all-electric vehicles due in showrooms later this

year, will use those types of batteries.

"It is expected that the future of electric cars will be driven by lithium-ion batteries

because they have the ability to a very large charge of electricity," Kelly said.

The Buffalo laboratory has established a reputation for creativity, said Andreas Kramvis,

president and chief executive officer of Honeywell Specialty Materials, a $4.1 billion

business segment of New Jersey-based Honeywell.

"What the people and the scientists in this lab have achieved is remarkable," Kramvis said.

Scientists at the site have come up with other product solutions that do not add to global

warming and do not deplete the ozone layer, he said.

The Buffalo lab holds 530 active-use patents and has 950 applications pending, Kramvis

said.

Rep. Brian Higgins, D-Buffalo, said those statistics bode well for the economy, since

commercialization of that work produces jobs and new business investment.

The Energy Department received more than 250 proposals for projects related to advanced

battery electric drive manufacturing and deployment of electric vehicles.

It selected 48 recipients, including Honeywell, said Tien Duong of the department's Office

of Vehicle Technologies.

Duong said Honeywell's project is essential in helping create a domestic lithium-ion

battery industry.

The project brings together innovative battery materials, a viable customer base and

private sector resources, he said.

Local leaders at Monday's event also praised Honeywell for taking an active role in a

cleanup of the Buffalo River and for supporting community projects.