Dow Kokam President and CEO Ravi Shanker is ready to not only lead an advanced lithium polymer battery company, but also help build a market for the nation's blossoming battery industry.

    Dow Kokam formed last year as a joint venture between The Dow Chemical Co. and Townsend Kokam LLC. It plans to build its first battery cell manufacturing plant in Midland, with the first phase costing $322 million and creating 320 jobs. The cells it produces will go into battery packs that can power hybrid and electric vehicles.

Shanker spoke Thursday afternoon as part of the Saginaw Club's Inside Business speaker series.

    Shanker, who joined Dow Chemical in 1991, was named president and CEO of Dow Kokam in November. Coworkers say he's a dedicated man who is committed to bringing out the best from his colleagues. Shanker said it will take passion and perseverance to make the company, and the U.S. battery industry, a success.

    Dow Kokam is well positioned because its product offers a safe, cost-effective, light battery with an extended range, Shanker said. Now the challenge is to take the product and build a market by inspiring demand, he said.

    "The challenge is there, but it's the kind of challenge you want to face," Shanker said, noting the technology will make a positive difference in the world.

    Through his long hours on the project, his motivations include creating jobs, bettering the environment and leaving the world a better place for the next generation.

    He said the United States has been too reliant on one energy source -- oil -- and that it is time to diversify the options. In the long-term, lithium for the batteries could come from renewable sources by finding a way to economically recycle older batteries, Shanker said.

    "Our belief is chemistry will come to the rescue," he said.

    When comparing Dow Kokam to other companies in the state that are building batteries, such as A123Systems, Shanker said it's important to keep the various market segments in mind. Some companies are working on consumer hybrid automobiles and others, like Dow Kokam, are working on the next generation of plug-in vehicles and options for commercial fleets.

    The aim is to break ground on the first phase of a production facility in Midland in May and have it operational in the first half of 2012, Shanker said.

    "How quickly we start up depends on the technological decisions we make," he said.

    In January, Dow Kokam announced it bought French-based Société de Véhicles Electriques, which was a wholly-owned subsidiary of Groupe Industriel Marcel Dassault. The company develops high-performance battery and energy management systems. The purchase combined Dow Kokam's battery cell manufacturing capabilities with SVE's battery pack technology and gave Dow Kokam exposure to the European auto market.

    In November, the company purchased almost all of Kokam America Inc.'s assets to add to Dow Kokam's capabilities.

    Dow Kokam received a $161 million grant from the U.S. Department of Energy to develop the manufacturing facility in Midland. The site also received a $145 million state tax credit.

    Shanker said the state and federal support validates Dow Kokam's mission.

    "The battery is changing the heart of the automobile," Shanker said.

    He said the funding allowed the project to move forward when one of its parent companies, Dow Chemical, was in a difficult financial position.

    "This was not a time to be asking for an interesting science experiment," he said, though once a viable business plan was developed, Dow pursued a partnership and formed Dow Kokam.