LG U.S. Plant To Support 250,000 Electric Cars

LG Chem Ltd will have the capacity to build battery cells that could support up to 250,000 electric vehicles in the United States when its first U.S. plant becomes fully operational in 2013, the chief of the U.S. unit said on Thursday.

Compact Power, the Michigan-based unit of South Korea’s LG Chem, is investing between $300 million to $400 million to build a battery cell manufacturing facility in Michigan, Compact Power Chief Executive Prabhakar Patil told Reuters.
The project is supported by $151 million in grants awarded by the Obama administration, he added.

The grant, announced on Wednesday, was part of the $2.4 billion allocated by the U.S. government as part of its “green” economy vision and efforts to enhance U.S. energy independence by supporting battery technology for clean-energy cars.

Compact Power is supplying next-generation lithium-ion batteries for General Motors Co’s Volt plug-in, the centerpiece of the automaker’s effort to move away from gas-guzzling vehicles. It has also won the contract to build batteries for GM’s planned SUV plug-in for the Buick brand.

“We’re seeing a strengthening of commitment for electric vehicles not only from GM but other manufacturers that we believe this is going to be a sustainable business, sustainable volume,” Patil said in an interview.

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