Filed under: Detroit Auto Show, Green, Plants/Manufacturing, Chevrolet, GM
Detroit 2009: GM will build Volt battery packs with LG Chem in Michigan
by Sam Abuelsamid on Jan 12th 2009 at 10:29AM 
One of the big remaining technical questions for General Motors' Chevrolet Volt has been who the automaker will tap to supply the batteries. LG Chem and A123 Systems are the two companies that have been supplying prototype battery packs for Volt development program. It has long been rumored that South Korea's LG Chem would be selected, and today CEO Rick Wagoner confirmed the selection. Surprisingly though, GM has decided it will take responsibility for actually building the complete packs. GM will also take full responsibility for all the battery management systems and power electronics.
The company will build a new factory in Michigan, but a specific site has yet to be announced, in part because negotiations are ongoing with state and local authorities on the usual incentives and approvals. LG Chem's US subsidiary, Compact Power of Troy, Michigan, has been building the prototype packs for the development vehicles and will continue to provide integration support and act as a liaison for the program.
[Source: General Motors]
PRESS RELEASE:
Chevrolet Volt Battery Packs Will Be Manufactured by General Motors in the United States
* GM will establish the first lithium-ion battery pack manufacturing facility in the United States operated by a major automaker
* LG Chem has been selected to supply the lithium-ion battery cells for the Chevrolet Volt
* Advanced battery strategy strengthens GM's capabilities to develop hybrid and electric vehicles
* GM will open a new automotive battery lab - the largest of its kind - in the United States to further strengthen design, development and testing capabilities
* A partnership with the University of Michigan has been established to develop a specialized curriculum for battery engineers
DETROIT - The Chevrolet Volt, an extended-range electric vehicle that delivers up to 40 miles of gasoline- and emissions-free electric driving, will use battery packs manufactured in the United States by General Motors, Chairman and CEO Rick Wagoner announced at the North American International Auto Show.
GM will establish the first lithium-ion battery pack manufacturing facility operated by a major automaker in the United States to produce the Volt's battery pack system. It consists of lithium-ion cells that are grouped into modules, along with other key battery components.
The plant 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 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. "This is a further demonstration of our commitment to the electrification of the automobile and to the Chevrolet Volt - a commitment that now totals more than $1 billion."
The Volt's lithium-ion battery cells will be supplied by LG Chem. Compact Power Inc., a subsidiary of LG Chem based in Troy, Mich., will build battery packs for Volt prototype vehicles until GM's battery facility is operational. A joint engineering contract with Compact Power and LG Chem also has been signed to further expedite the development of the Volt's lithium-ion battery technology.
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.
"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."
GM's advanced battery strategy
"Our announcements are part of a comprehensive advanced battery strategy for GM that is expanding along two pathways," Wagoner said. "First, we're identifying core competencies - such as battery research, development and assembly - and integrating these fundamentals into our product development and manufacturing operations. We believe this will become a competitive advantage for GM, and will be critical to GM's long-term success. Secondly, we're building a roster of battery suppliers and academic experts from around the globe, and leveraging their specialized abilities to develop battery chemistries and cell designs, as well as future automotive battery engineers."
Key elements of GM's advanced battery strategy include:
* Opening the largest automotive battery lab in the United States (31,000 square feet / 3,251 square meters) that 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, N.Y.; Warren, Mich.; Torrance, Calif.; and Mainz-Kastel, Germany. This new battery lab will be located in Michigan, subject to final negotiations with state and local authorities
* Continuing 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
* Joining 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
* Continuing to grow and establish a robust lineup 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
* Collaborating with government organizations and industry consortia, such as the U.S. Department of Energy; United States Council for Automotive Research; the United States Advanced Battery Consortium LLC; and Electric Power Research Institute to advance the development of hybrids, plug-ins and electric vehicles, and related electric infrastructure to support those vehicles
Energy alternatives and advanced technologies that reduce dependency on petroleum, improve fuel economy and reduce emissions are the keys to developing sustainable transportation. GM is pursuing several options to best meet the varied needs of customers around the world - from advanced gasoline, diesel and biofuel technology to electrically assisted vehicles such as hybrids, plug-in hybrids and - ultimately -electrically driven extended-range electric vehicles and hydrogen fuel cell vehicles. GM believes that electrically driven vehicles, based on battery and hydrogen fuel cell technology, offer the best long-term solution for providing sustainable personal transportation.
In June 2008, the GM Board of Directors approved the Chevrolet Volt program and Voltec™ propulsion system for production starting in late 2010. For trips of up to 40 miles, the Volt is powered by electricity from the grid and stored in its lithium-ion battery pack. Beyond 40 miles, a small engine-generator creates additional electricity to extend the range of the Volt several hundred additional miles. The development of the Volt's 16 kWh T-shaped lithium-ion battery, which is roughly 6 feet long (1.8 meters) and weighs nearly 400 pounds (181 kg), is key to the Volt's success. The production-intent design was revealed in September 2008.
General Motors Corp. (NYSE: GM), the world's largest automaker, has been the annual global industry sales leader for 77 years. Founded in 1908, GM today employs about 252,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 34 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.
# # #
Reader Comments (Page 1 of 4)
Jay Evans 10:34AM (1/12/2009)
The company will build a new factory in Michigan, but a specific site has yet to be announced,
uhh, and they plan to introduce this car when ? A little over a year from now? Fat chance....
Reply
jcar302 10:39AM (1/12/2009)
That was my first thought.
They better get to it.
hypermiler 10:42AM (1/12/2009)
It could be that the first batch of packs would be shipped from Korea in completed form.
Dsuupr 10:43AM (1/12/2009)
Wow, what is with the negativity. Are you worried that GM's comeback will cause you and millions of other Americans to do what you/they have said for years, "I'll buy American when they . . ."? The when is now. It is time people start putting their money where their mouth is.
BTW: They can easily get it done, as many states now have a "one stop" process for business licenses that are needed for renewable energy or "green" products.
RSR 11:00AM (1/12/2009)
Volt is coming out late 2010, so it's quite more than a year. I don't think they will have a timing issue.
tankd0g 11:15AM (1/12/2009)
2 Year test cycle for these batteries and they don't even have one built from the supplier yet. Either this car is going to come out on time and have so many recalls it'll be easier just to leave it at the dealer every night, or say hello to 2012.
AZZO45b 11:29AM (1/12/2009)
I'm happy LG will have a US based plant... having it in MI is another bonus(as MI's unemployment numbers are higher than average...). Having stated the positive aspects upfront... I want to bring the obvious flip-side.
The Big 3 have stated in the past that the "transplants" make it hard for them to compete on a level playing field. These transplants also bring their own supplier base. Well now GM will be relying on a Korean transplant supplier to make a key component for their "American" car.
Will Korean LG get U.S. tax breaks+ R&D money? The "Buy American" crowd can't have it both ways... Hyundai / Kia employ thousands of Americans & use LG components as well.
Yet drive a Hyundai in places like SE MI & it gets keyed, owners get looks/ comments from the "Buy American" crowd. However, Volt drivers will be viewed as "American" as baseball & apple pie (despite the fact that the main power source of their car is Korean)
Can't have it BOTH ways.
MM 12:24PM (1/12/2009)
Last I checked it only to 6 months to build a building. Furthermore, no one actually says it HAS to be a new building. I would be pretty cool if GM bought and reopen the Wixom plant. OR maybe they are in negotiations with the State and UAW and might keep an existing plant open that was slated to be closed.
But hey, apparently its more fun to Sh*t on good news isn't it, Negative Nancy!
MM 12:26PM (1/12/2009)
WOW, I 've got to stop using my iPhone to post on Autoblog. I can't believe the number of typos I just had in my last post.
AZZO45b 12:47PM (1/12/2009)
MM: The Wixom plant??? Dude, they made entire cars in that plant. A battery plant does NOT need that much sq. footage.
MI governmnt was trying to get Universal to open a midwest movie studio at the Wixom plant location... now that industry would utilize all that space.
Jim D 10:36AM (1/12/2009)
Exciting to see that they are investing in the Michigan economy. With the amount of jobs lost in the passed months, a few new ones will be welcomed here.
Also interesting to see the choice of LG over the A123 design... I'm sure we'll hear more details as the development of the pack progresses.
Reply
hypermiler 10:50AM (1/12/2009)
Well, it was quite obvious which way GM was going when Bob Lutz confirmed that Volt mules were being tested only with LG's battery packs.
Interestingly enough, this is not the most advanced battery type LG has to offer. Hyundai's getting an lithium polymer battery pack for Sonata and Elantra hybrids from LG this year.
The Other Bob 11:47AM (1/12/2009)
"Also interesting to see the choice of LG over the A123 design"
This IS A123, they are partnered with LG.
Sam Abuelsamid 5:26PM (1/17/2009)
A123 partnered with Continental for the Volt program. They have never partnered with LG Chem
Pat NCN 11:08AM (1/12/2009)
When I first saw the picture, I thought they were preparing GM's gravestone.
Reply
asdffdsa 12:36PM (1/12/2009)
no, that is a boat anchor!
j/k
I can't wait to see this car in production...
Rocketboy 11:09AM (1/12/2009)
So, this leaves a question for the Buy American crowd. Is the Volt a Korean car now?
Reply
hypermiler 11:14AM (1/12/2009)
More or less yes. The Volt mule that Rick Wagoner drove to Senate bailout hearing wasn't a Cruze, but a Korean domestic market Lacetti that was airlifted from Korea for the publicity stunt.
Volt rides on a Korean-developed Lacetti/Cruze chassis, Korean battery, Korean dashboard made by Lacetti/Cruze dashboard maker(Why the dashboard looked like LG cellphone design), heavy Korean content overall.
Mr.Oak 11:17AM (1/12/2009)
Does eating a Mexican grown avocado, make you a Mexican?
tankd0g 11:23AM (1/12/2009)
Maybe there will be a Hyundai Volt with a 10 year warranty :)