GM will launch battery production

ANN ARBOR, Mich., Jan. 13 (UPI) -- U.S.-based General Motors will begin producing batteries for a new electric car.

GM is already the largest U.S. automaker and will now launch battery production at its planned battery lab in Ann Arbor, Mich., for the Chevrolet Volt extended-range electric car.

The plan is to bring the Volt to the commercial market by 2010, GM Chairman Rick Wagoner said.

GM has selected a Korean company, LG Chem, as the supplier of the lithium-ion battery cells. LG Chem's subsidiary Compact Power also will be involved in the battery supply chain as will Massachusetts-based A123 Systems, Japan's Hitachi and U.S. company Cobasys, Xinhua reports.

"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.

Between the battery and the electric car, GM has spent more than $1 billion on research and development, Wagoner said.

Compact Power will build battery packs for Volt prototype vehicles until GM's battery facility is operational, and GM will work with the University of Michigan to create the Ann Arbor lab.

GM could benefit from new legislation in the state that offers $335 million in state incentives to attract battery researchers and manufacturers.