LG Chem Ltd., the South Korean chemicals giant that bankrupt General Motors Corp. chose to supply it with lithium-ion batteries for its Chevrolet Volt plug-in, will invest W1 trillion ($799 million) to
build a battery plant near Seoul.
The money in the electric car battery plant will be invested over four years, and LG Chem said in a statement it expects to reap W2 trillion from its battery business in 2015, or a 20% share of the projected W10 trillion global market. The Seoul company will also supply lithium-ion polymer batteries to automaker Hyundai Motor Co. and Kia Motors Corp., which plan to make hybrid electric vehicles later this year.
GM, which
filed for bankruptcy on June 1, just spent $25 million to make a
battery plant in Michigan as part of its plan to build a slimmer, greener "New GM" around Chevrolet and several other brands. It plans to have the Volt extended range electric vehicle in production in 2010. LG Chem will supply GM with li-ion battery cells, electronic components and control hardware.
The global electric car battery market is heating up as cars near production. A global recession depressed oil prices to around $40 per barrel in December, causing some industry watchers to question the plans of automakers investing significant time and money in the hybrid and electric car market. But small signs of an upturn from an economic trough have boosted prices back above $70 per barrel and have given battery makers and their suppliers some wind in their sales. So has money from governments hoping to combat global climate change.
For an idea of what's going on, check out this wrap-up of our coverage in
the hybrid and electric car market. -
Baz Hiralal Go to the storyObama bets billions to fuel electric car race
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