Oct. 7--Metaullics Systems has been granted four megawatts of low-cost hydropower to aid an expansion project that will increase its Sanborn plant's production of a material that could be used in batteries for electric vehicles.

The award of inexpensive expansion power from the New York Power Authority will support a $19 million expansion project that could create as many as 48 new jobs at the Cory Road factory, NYPA officials said Tuesday.

Metaullics Systems is adding 72,600 square feet of manufacturing space to its plant at 2050 Cory Road. The company in August was granted $11.3 million in federal stimulus funds to aid its efforts to make carbon powder anode material for lithium-ion batteries.

Metaullics Systems, which is making the material now on a developmental basis, is believed to be the only U. S. source of processed graphite for electric-drive vehicles, which include hybrids and vehicles that run solely on battery power, NYPA officials said.

Kevin J. Scott, Metaullics Systems' operation manager, said the low-cost hydropower is a main reason why the expansion is happening in Sanborn, rather than at other U. S. sites owned by its parent company, Pyrotek, based in Spokane, Wash. The expansion will increase the company's graphite furnace capacity and add other equipment to the plant.

Metaullics Systems also expects to seek other incentives for the expansion project through the Niagara County Industrial Development Agency, Scott said.

That aid could include tax breaks and low-interest loans, said Henry Sloma, the IDA's chairman.

Metaullics Systems currently employs about 50 workers in Sanborn, including an adjacent factory that receives a separate allocation of 1.2 megawatts of low-cost hydropower. That plant makes graphite powders for lithium-ion batteries used in cell phones, laptop computers and small power tools.

drobinson@buffnews.com

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