Battery maker Boston Power is working to build a facility in Auburn, Massachusetts to build lithium-ion batteries for Plug-in Hybrid and electric battery vehicles, Notebook PCs and national security applications, the company said Monday.

At the new facility, the company will produce its battery technology called Swing which it says will establish new benchmarks in energy density, long life, safety, weight, cost and environmental sustainability. About new so called green jobs and 2,000 indirect jobs are expected to be created through the facility according to the firm.

Boston Power is seeking state and federal funding to proceed with the construction of the plant. It is seeking about $100 million from the U.S. Department of Energy's advanced battery and cell manufacturing grant program under the stimulus package. It is also seeking funds from the FY10 federal budget under the Defense Production Act.

The Energy Department is expected to decide on the loans in the summer. Boston Power's CEO says it could take three years to build the Auburn plant and may start working on it later this year, according to CNET.

Boston Power operates facilities in Asia and has manufactured batteries for Hewlett Packard.

Battery