SKorea's LG to build batteries for GM's electric car
South Korea's LG Chem has announced a 733 million dollar investment plan to make batteries for the first all-electric vehicle to be produced by US auto giant General Motors.
LG Chem, part of the LG group, said it signed a deal this week during an auto show in Detroit to build lithium-ion batteries for GM's heavily touted Chevy Volt car from 2010 until the end of 2015.
The company said in a statement it would spend one trillion won (733 million dollars) to build a new battery production line for GM at its factory in Ochang, 90 kilometres (54 miles) south of Seoul.
The Volt is designed to run 40 miles on a single battery charge. Beyond that range, it uses a petrol engine which drives a generator to produce electrical power.
LG said the deal would help it become a major supplier of batteries for a new generation of environmentally-friendly electric cars.
It also plans to provide lithium-ion batteries for hybrid electric vehicles (HEVs) to be produced by South Korean carmakers.
LG said the global HEV and electric vehicle market is expected to grow by an average of 47 percent annually, reaching 2.3 billion dollars in 2012 from 510 million dollars in 2008.
The US government has provided GM and Chrysler with 13.4 billion dollars in loans to help rejig their product lines and ride out a sales slump.
GM chief executive Rick Wagoner pledged Sunday during the Detroit show to build "smaller, smarter and more fuel-efficient" cars and trucks.
