GM to build electric car battery plant; ties up with LG for battery cells

The US largest automaker, General Motors will set up the first lithium-ion battery pack manufacturing facility in the US to produce the Chevrolet Volt's battery pack system, as part of its plan to roll out the plug-in electric car next year.

Speaking to reporters at the North American International Auto Show in Detroit yesterday, GM chairman Rick Wagoner said that the company is coming with a multi-faceted advanced battery development plan for the Chevrolet Volt plug-in electric car.

GM will establish the first lithium-ion battery pack manufacturing plant, which will be located in Michigan, subject to negotiations with state and local government authorities. Facility preparation will begin in early 2009, with production tooling to be installed mid-year and output starting in 2010.

The governor of Michigan State Jennifer Granholm is expected to sign a new law, where the state will allocate $335 million as state incentives to entice battery research and manufacturers to the state.

With 31,000 square feet facility, GM proposes to have the largest automotive battery lab in the US, whicht will be capable of testing new energy storage system technologies, as well as lithium-ion and nickel-metal hydride batteries, to accelerate the domestic development of advanced battery technology and lead GM's network of existing labs in Honeoye Falls, NY; Warren, Mich.; Torrance, Calif.; and Mainz-Kastel, Germany.

To strengthen its plans, GM has tied with the Korean company LG Chem to supply lithium-ion battery cells and its subsidiary, Compact Power based in Troy will build battery packs for Volt prototype vehicles until GM's battery facility is operational.

GM has been testing battery packs for the Volt, powered by cells from LG Chem, for the past 16 months. These tests - both on the road and in the lab - have provided invaluable insight into lithium-ion battery technology.

GM is aiming to get the Volt, with a secondary gasoline motor that will extends its range from the present 64 kilometres.

"Our selection of LG Chem was based on performance, production readiness, efficiency, durability and LG Chem's demonstrated track record of exceptional quality," Wagoner said. "At GM, we believe the technical strengths of LG Chem, combined with our own engineering and manufacturing expertise, will help position us as a key player in the development of electrically driven vehicles today and in the future."

The auto maker will continue to ramp-up "in-house" battery-development capability by increasing the staff of GM's global hybrid, electric vehicle and advanced battery organization to several hundred engineers in 2009, including more than 200 currently dedicated to advanced battery technologies.

GM is also joining hands with the University of Michigan to create a new automotive advanced battery lab in Ann Arbor, Mich., and a specialized curriculum within U of M's College of Engineering to develop automotive battery engineers.

It also plans to establish a line up of battery suppliers for cell development and manufacturing and battery integration expertise, with companies such as LG Chem, A123Systems, Hitachi Ltd., Compact Power and Cobasys.

After receiving government approval for a bailout, the automaker is forced to prove that it is a viable company in the long run and is staking its future on lithium-ion technology and has spent more than $1-billion on the Volt programme to date,

GM plans to have a battery that will last 10 years or more than 240,000km. At present the Volt is designed to be powered by a lithium-ion battery plug that can be recharged either via a regular electrical socket when parked or by an onboard generator while driving and can run 40 miles on battery power alone, after which, a small internal combustion engine will generate power for the car.

The car is set to roll out next year and although the company has not announced its price, experts feel that it may cost in the region of $30,000 to $40,000.

India's largest automobile company, Tata Motors plans to produce an electric-drive version of the Nano called The E-Nano, which will be built in cooperation with the Norwegian electric car specialist firm Miljoebil Grenland. (See: Tata plans E-Nano, electric version of Rs1-lakh car)

India's only electric car manufacturer Reva Electric Car Company Pvt. Ltd. (RECC) has received an overseas investment of $20 million. Draper Fisher Jurveston (DFJ) and Global Environment Fund (GEF) led the investment round in support of RECC's global growth. Edelweiss Capital acted as exclusive financial advisor to Reva on the complete transaction.

The Bangalore-based RECC has an installed capacity of 6,000 electric cars per annum and employs 240. After seven years of R&D in developing a commercially viable electric car, the company commercialised its operations in June 2001 with India's first zero polluting electric vehicle. (See: Reva Electric Car Company secures $20 million investment)

Reva has 1,800 vehicles on the road and is also being test marketed in the US, Norway, Spain and other EU countries and holds 10 patents.

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