New US Electric Vehicle to Use LG Chem Battery

LG Chem said yesterday that it will be the exclusive supplier of lithium-ion polymer batteries for the Chevrolet Volt, a new hybrid car to be put on sale from next year.

LG Chem and General Motors made the announcement yesterday as the U.S. auto giant unveiled the Volt at the North American International Auto Show in Detroit.

The Volt is a plug-in electric car powered solely by an electric motor, unlike conventional hybrids that use batteries and fossil fuel.

LG Chem Vice Chairman Kim Ban-seok said, “Batteries will become a mega business that will bring about the biggest change in LG Chem’s 60-year history.”

The Korean company will supply batteries to the U.S. automaker between the second half of 2010 and 2016. Supposing that GM produces about 300,000 Volts over the seven year period, LG Chem is expected to earn two trillion won (1.7 billion dollars) in sales from the batteries, according to chemical industry sources.

LG Chem plans to refurnish additional battery production lines for GM by the first half of next year at the Ochang Techno Park in North Chungcheong Province, where it makes batteries for hybrid vehicles.

abc@donga.com