A123 Systems isn't the only advanced battery manufacturer getting millions of dollars in refundable state tax credits to tempt them to set up shop in the beleaguered state of Michigan (see A123 Lands $100M in Tax Credits).

The state is giving a total of $543.5 million in tax credits to four companies. Lithium-ion battery maker A123 is to receive a battery cell tax credit of $100 million over four years, plus a $25.2 million high-tech state tax credit over the next 15 years.

The remaining three recipients each received a similar $100 million in battery cell tax credits over four years, plus varying amounts of 15-year tax credits to make up their total haul.

A consortium consisting of the U.S. battery maker Johnson Controls and French battery maker Saft will receive $148.5 million in tax credits, and KD Advanced Battery Group — a consortium of The Dow Chemical Corp., Kokam America Inc. and Townsend Ventures — will receive $146.6 million in tax credits.

And Korean battery maker LG Chem and its U.S. subsidiary Compact Power will receive $125.2 million in tax credits.

LG Chem beat out A123 for contract to make battery cells for General Motors' upcoming Chevy Volt plug-in hybrid, although A123 has landed a deal to design cells for Chrysler's upcoming line of electric hybrid vehicles (see With General Motors Snub, Is A123 Systems on the Ropes? and A123 Inks Battery Deal with Chrysler).

The four companies have pledged to invest a combined $1.7 billion in new lithium-ion battery factories in the state, and Michigan is hoping its support will help them land part of the $2 billion set aside for advanced battery manufacturing in the federal stimulus package (see Obama Signs Stimulus Package).