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.