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Home | Green Cars News | Business | LG Chem to Spend $800m in New Electric-Car Battery Plant

LG Chem to Spend $800m in New Electric-Car Battery Plant

10 June, 2009 01:11:00

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LG Chem Ltd. said Wednesday it plans to spend 1 trillion won (US$800 million) to build an electric-car battery plant over the next four years.

LG Chem broke ground for the plant earlier in the day in Ochang, 95 km south of Seoul.

Robert Kruse, GM executive director-global vehicle engineering, and Yang Woong-chul, Hyundai president of research and development, were on hand, as both auto makers have contracts with LG Chem to supply batteries for their electric-vehicle and hybrid programs.

LG Chem aims to increase its global market share in the electric-car battery sector to over 20 percent by posting two trillion won in sales until 2015.

The company’s revenue from battery sales is projected at more than 2 trillion won ($1.6 billion) by 2015, when the global electric-car battery market is expected to grow to more than 10 trillion won ($8 billion) in 2015.

The chemicals maker said it expected the number of electric cars on the road to swell to 4.6 million in the same period.

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.

LG Chem will also supply lithium-ion batteries for hybrid vehicles set to be launched next month by South Korea's top carmaker Hyundai Motor.

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