GM TO BUILD ITS OWN BATTERIES

Just as the company makes engines, it will now make battery packs for electric cars:General Motors (GM) is getting into the battery-making business. On Monday, the company confirmed early speculation that LG Chem, based in Korea, will supply lithium-ion batteries for its Volt electric vehicle, which is due out next year. But GM also announced that it intends to start manufacturing battery packs itself, noting that battery manufacturing will be central to its business going forward.The Chevrolet Volt is an electric vehicle that runs on batteries charged from an ordinary power outlet for trips shorter than 40 miles. For longer journeys, an onboard gasoline or ethanol-powered generator will recharge the battery. Two battery companies, LG Chem and A123 Systems, based in Watertown, MA, have been in the running to supply the key component of a battery pack--the individual battery cells--for the Volt. Hundreds of such cells must be wired together and paired with control electronics to create the car's 16-kilowatt-hour battery pack.

Initially, cells from LG Chem will be assembled into battery packs by a subsidiary of LG Chem: Compact Power, based in Troy, MI. But once a new manufacturing plant is built, GM itself will assemble cells into battery packs, according to Monday's announcement. Bob Kruse, GM's executive director of North American Engineering Operations, says that the decision to make batteries is much like GM's decision to make its own engines because the technology is vital to the company's future success.