A123 is to build a new US$40m headquarters complex in Novi, Michigan, housing all corporate functions, an engineering centre, new laboratory space and a manufacturing plant.

The 150,000 square foot campus will replace A123's leased space in Livonia and Romulus, Michigan and serve as the workplace for more than 400 employees when finished.

"We are making a commitment to a continued significant presence in Michigan, in proximity to the skilled and experienced talent here," said A123 Systems CEO, Jason Forcier.

"This new complex meets future needs by becoming our epicentre of engineering. It will allow us to grow our engineering workforce and bring testing inside, that has previously been done outside the company.

"In addition to our corporate staff and our engineering group, we will maintain manufacturing capability for systems assembly to meet the demands of the US marketplace as they continue to evolve."

As part of adapting facilities to match the transformation of A123 Systems' business in the US, the company also announced it will consolidate its American manufacturing operations into a smaller site on the new campus.

This will impact around 200 manufacturing jobs at the company's current locations in Livonia and Romulus, Michigan.

With the changes, the company expects its net impact on the Michigan and US economy through its payroll will surpass its current level by US$10m annually, by the end of 2019.

The primary driver of the net payroll growth will be the company's expanding engineering staff and testing capabilities with the new Michigan site.

The engineering centre will develop new low- voltage products for growing global markets.

Production for these products will be located in close proximity to customers, including the new Novi manufacturing facility, the recently announced site in Ostrava, Czech Republic and the ongoing expansion at the company's Hangzhou, China campus.

The company expects to start construction in the third quarter of this year and begin to move into the new Michigan complex by the end of 2018.