GM Battery Cell Supplier Says Michigan Plant To Be Completed Late 2011

GM Battery Cell Supplier Says Michigan Plant To Be Completed Late 2011

By John O'Dell March 15, 2010

Battery maker LG Chem, the South Korean company whose U.S. subsidiary has the contract to manufacture lithium battery cells for General Motor's upcoming extended range plug-in hybrid, says it will complete construction of its $303 million Michigan battery plant near the end of next year.

The company announced plans for the plant in October but did not release a timetable then.

LG subsidiary Compact Power said the new plant, near Holland, Mich., will be built using $151.5 million of the company's money and $151.5 million from a matching advanced technology grant from the U.S. Energy Department.

LG Chem-Compact Power also received a multi-year, $100 million tax incentive package from the State of Michigan to help offset plant development and operating costs.

The plant is expected to begin operation with just 50 employees, ramping up to as many as 400 at full production.

Production capacity is 20 million lithium-ion battery cells a year, sufficient for as many as 200,000 battery packs, depending on their size.

The Chevrolet Volt extended-range plug-in is expected to account for about half the plant's capacity and it is unknown whether other GM hybrids and EVs will account for the rest or if  Compact Power plans to sell lithium cells to other automakers

Volt production begins late this year with the first cars expected to enter the market by December.  LG will supply battery cells from its plants in South Korea until the Michigan facility is up and running.

GM has its own facility for assembling the cells into completed battery packs.

John O'Dell:  is an AutoObserver Senior Editor. Follow @AutoObserver on Twitter.