When the government chooses the taxpayer loses

Electric-Car Firm That Got Biden Visit, $118M in Stimulus, Files for Bankruptcy

By Fred Lucas

Vice President Joe Biden viewed an electric car that used Ener1 batteries as he toured the Ener1 battery factory in Greenfield, Ind., on Jan. 26, 2011. (White House photo/David Lienemann)

(CNSNews.com) - Ener1--a company that manufactures batteries for electric cars, and that received $118.5 million in federal stimulus money, and that Vice President Joe Biden visited last year the day after President Obama’s State of the Union Address—announced today that it has filed for Chapter 11 bankruptcy protection.

In last year’s State of the Union Address, delivered Jan. 25, 2011, President Obama set a national goal of having a million electric vehicles on the road in the United States by 2015—a goal that would be achieved, Obama said, by taking money out of the oil industry and “investing” it in new technology.

“With more research and incentives, we can break our dependence on oil with biofuels and become the first country to have a million electric vehicles on the road by 2015,” said Obama.

“We need to get behind this innovation,” he said. “And to help pay for it, I'm asking Congress to eliminate the billions in taxpayer dollars we currently give to oil companies. I don't know if you've noticed, but they're doing just fine on their own. So instead of subsidizing yesterday's energy, let's invest in tomorrow's.”

The next day, Biden visited the Ener1 plant in Greenfield, Ind.—which the White House said at the time had received a $118.5 million grant from the Department of Energy and was the type of investment the president was talking about in his State of the Union.

Brian Levine, deputy domestic policy adviser to Biden, wrote an article about Biden’s visit to Ener1 on the White House webpage for the White House Middle Class Task Force, which Biden leads. The article was headlined “Our Plan to Put One Million Advanced Technology Vehicles on America’s Roads.”

“Last night, President Obama set a goal of making the United States the first country in the world to put one million advanced technology vehicles on the road,” Levine wrote. “This goal is part of the President’s plan to rebuild our economy by investing in innovation to create the jobs and industries of the future.