DETROIT, Jan 12, 2009 -- Xinhua


General Motors (GM), the biggest U. S. auto maker, will launch battery production in southeast Michigan for its upcoming Chevrolet Volt extended range electric car, GM Chairman Rick Wagoner told local media Monday.

As part of a multi-pronged, advanced battery development strategy to bring the Volt to market by 2010, GM Chairman Wagoner unveiled several initiatives. They include the selection of Korean company LG Chem as the supplier of lithium-ion battery cells. LG Chem's subsidiary, Compact Power, will be involved in the battery supply chain as will A123 Systems, Hitachi and Cobasys, he said.

"The design, development and production of advanced batteries must be a core competency for GM, and we've been rapidly building our capability and resources to support this direction," Wagoner said. "This is a further demonstration of our commitment to the electrification of the automobile and to the Chevrolet Volt -- a commitment that now totals more than 1 billion U.S. dollars," he said.

According to GM sources, the company expects work on a Michigan battery plant will start later this year, with production starting in 2010. The automaker is expected to use an existing company facility and hopes to disclose the site by June, pending the approval of government incentives.

Compact Power will build battery packs for Volt prototype vehicles until GM's battery facility is operational. GM is also joining with the University of Michigan to create a new automotive advanced battery lab in Ann Arbor and a specialized curriculum within U-M's College of Engineering to develop automotive battery engineers.

According to reports here, Gov. Jennifer Granholm of Michigan State is expected to sign a new law calling for 335 million U.S. dollars in state incentives to lure battery research and manufacturing to the state.

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