Railroaders place to shoot the shit.

General Electric Co. said it will build a $100 million plant near Albany, N.Y., that will employ 350 people to make batteries for hybrid locomotives and other applications.

The move will extend GE's decade-long effort into high-tech batteries, for which the company says it has invested $150 million. GE said it hopes its denser, more powerful batteries will also find uses in utilities, boats, mining trucks and cars.

To help construction, GE said it would tap a $15 million grant from New York state, and is seeking roughly $40 million from the federal economic-stimulus package. The efforts reflect a move by New York political leaders to develop a "Lithium Valley" for battery technology along the Erie Canal and by GE to gain from the Obama administration's push for renewable energy.

Federal stimulus money "helps make these technologies go forward more quickly," said GE's Chairman and CEO Jeff Immelt. He said the advanced-battery business will be part of GE's transportation unit and could generate $500 million per year in revenue by 2015.

GE said the battery plant will be operating by mid-2011, making the sodium-based battery for the company's hybrid locomotives that begin shipping in 2010; the initial battery packs will be made at GE's research labs. GE says the hybrid engines, which capture energy from braking, can boost fuel economy by up to 10%.

Mark Little, director of GE Global Research, said the company is seeking a location in the Albany area and plans to break ground on the factory this year. In addition to its research investment, GE also invested $70 million for a roughly 10% ownership stake in A123 Systems, which makes lithium batteries for plug-in electric passenger cars.

The location fits with New York's goal to be a hub of battery development and research. Gov. David Paterson said he hoped to make New York "a capital for the clean-energy economy."

The company and state leaders hope that teaming up boosts their chances of receiving federal stimulus money for the factory. GE's application for stimulus money is endorsed by Sens. Charles Schumer and Kirsten Gillibrand and U.S. Reps. Paul Tonko and Scott Murphy.

Write to Paul Glader at paul.glader@wsj.com