* Obama to announce grant winners in Indiana
* 48 projects in 25 states will share grants
* All three U.S. auto companies apply for money
President Barack Obama will announce $2.4 billion in grants on Wednesday to jump-start U.S. battery manufacturing to power hybrids and electric cars of the future and enhance national energy independence.
White House economic and Energy Department officials said 48 projects in 25 states would receive money under a deal that requires winners to match the federal investment.
Officials would not disclose recipients, but all three U.S. auto manufacturers -- General Motors Corp GM.UL, Ford Motor Co (F.N) and Chrysler Group -- sought funding.
The Obama administration envisions the grants will build momentum for developing plants for making advanced batteries and drive systems, creating tens of thousands of jobs as part of Obama's Green economy strategy, officials said.
The program is central to administration efforts to reduce U.S. oil imports and cut greenhouse gas emissions, officials said.
Obama announced the initiative, funded with economic stimulus money, in March.
Michigan, hard hit by the dramatic contraction of U.S. auto production, led all states with 11 grants. Indiana was second with seven, officials said. Academic interests, utilities and research cooperatives also applied for funding.
U.S.-based companies will receive $1.5 billion to produce batteries and components and expand battery recycling capabilities.
An additional $500 million will go to producing electric motors and other drive train components.
The final $400 million will pay for testing plug-in hybrids and all-electric vehicles.
The administration preferred projects that could be launched and completed relatively quickly.
Almost all battery manufacturing for advanced technology vehicles is currently based in Asia. Japan's Toyota Motor Co (7203.T) is the leader in gasoline-electric hybrid vehicles with its popular Prius. South Korea's LG Chem Ltd will supply battery systems for GM's highly touted Chevrolet Volt plug-in, due out in 2010.
A partnership between Johnson Controls Inc (JCI.N) and France's Saft will supply a complete battery system for Ford's first plug-in hybrid, due out in 2012.
The battery grants are separate from Energy Department loans aimed at helping U.S. automakers retool factories for making more fuel-efficient vehicles. (Reporting by John Crawley and Ayesha Rascoe)