GM to build Chevy Volt batteries

General Motors has decided to manufacture its own battery packs for its new electric vehicle, the Chevy Volt.

"GM is getting back in the battery business," CEO Rick Wagoner announced Monday.

The company also announced Monday that it has chosen LG Chem to provide the lithium-ion cells for the battery packs GM plans to manufacture.

GM announced in September that it had chosen a battery supplier, but would not reveal which company that was. LG Chem and A123Systems have long been involved in the development of the lithium-ion cells for the Volt's E-Flex electric drive train. While some speculated on other companies getting the contract, it should be no surprise that one of the developers was chosen to be the supplier.

Monday's announcement follows mixed December news on the Chevy Volt's progress. It was reported that because of the financial crisis facing the company, the plant for the Chevy Volt engine may be put on hold. GM followed that news up with an announcement that bringing the Volt to market is one of the company's highest priorities.

GM's Chevy Volt.

(Credit: GM)

Batteries have long been the technological hurdle in developing electric cars, the major showpieces for many car companies at this year's North American International Auto Show in Detroit.

Initially, GM had planned to purchase the battery packs--as well as the cells--from an outside supplier, but eventually it "decided that strategically it's in the company's best interest to move into the pack business," said Bob Kruse, GM's executive director of North American Engineering Operations.

The planned plant will manufacture the T-shaped battery packs for the Chevy Volt, which GM plans to make available by the end of next year. The Volt runs on batteries for 40 miles and then an on-board internal combustion engine runs a generator to recharge the batteries.

GM also tested batteries from A123 Systems, which lost out to LG Chem as a supplier. Kruse said that A123 Systems is in consideration for future work.

Construction of the plant is contingent on GM receiving tax incentives from the state of Michigan to build the facility, Kruse said. Right now, most battery production is done in Asia.

"I think there's an opportunity to create a supply base here in the U.S. but it's going to require some government leadership to say this is strategic," he said.

In tandem with the announcement, GM has also signed a deal with the University of Michigan to open a battery lab in the state. It will be the largest battery lab in the U.S, according to GM.

Automakers are able to work on low volumes of electric cars, but the industry lacks enough skilled personnel to manufacture on a large scale, said Anne Marie Sastry, a professor at the University of Michigan.

CNET News' Martin LaMonica contributed to this report.

[i8246i]

Lets hope they decide to make their plant in the USA. It would create a ton of new jobs (that is, if they market their hybrids intelligently), and restore some faith in the consumers.

[i8246i]

Wow, guess I should read the whole article before making a comment.

*facepalm*

[maxsell]

This is a very good move for GM and the US. We need to create our own battery manufacturing facilities and not be so reliant on other countries. We don't want to be in another crude oil import situation.

[i8246i]

I'm also holding onto the pipe dream that with this new Volt, some of the closed down plants will...re-open? And that GM will let their old employees back on?

*sigh* One can only hope

[AmbientShadow]

I guess all we can do is cross our fingers and hope that the Volt will be the savior of american car manufacturing we all hope it to be. Let us also hope that GM improves their interior build quality, 'cause man, the **** got 'em beat hard on that one >.<

[JimminieCricket]

This is not new technology...... 1990 California passed a 0% emissions mandate. 1990 GM created an electric car that could go 60-70 miles using NO FUEL. You could plug it in while you slept. It was called the EV1. There was a wait list for these cars. Someone or something scared GM into pulling them all off the street. They went so far as to shred each and every one of them. Check out the documentary "Who killed the electric car" Visit: http://www.pluginamerica.org/
We all need to asure that petroleum companies don't stop the electric car from being created!

The EV1's were shredded because they didn't meet US safety standards--that's why they were all leased, not sold. Whether that was right or wrong is irrelevant--it wasn't a conspiracy, just the facts of life.

[polis12]

The other poster speaks the truth, the GM EV1 was not fully compliant with US safety standards and was not a long-term solution. If I remember correctly, the safety standards were relaxed through legislation on conditions of a test basis, as the whole thing was relatively an experiment for both the government and GM.

In addition, for a more practical reason why the EV1 was a failure, it was mostly just good business practice regardless of what that documentary showed (and yes, I saw it). The EV1 was not a sustainable car for the time, even if the thing had been technologically sound (which it wasn't). For 99.9% of consumers, the EV1 just was not a practical car. Therefore, the thing was expensive to produce, unmarketable, and would have been a poor seller. At the end of the day, a business cannot survive supporting such products. Trust me, GM would have been dead a long time ago had they thrown all their eggs in the EV1's basket.