Under the new deal LG Chem and Compact Power will produce lithium ion battery packs for the Ford Focus Electric, which will hit the U.S. market next year.
LG Chem said that the battery packs will initially be produced and assembled at the plant currently under construction in Ochang, North Chungcheong Province. LG Chem’s Ochang plant, which is designed specifically for producing batteries for electric automobiles, will be completed during the second half of the year.
Once Compact Power’s plant in Holland, Michigan is operational, the battery cells will be produced at the Ochang plant and assembled into battery packs in the United States.
Compact Power will hold a groundbreaking ceremony for its plant in Holland, Michigan on Thursday, whose attendants will include President Barack Obama.
According to LG Chem officials, Compact Power’s plant is scheduled to begin operations in 2012, before being fully completed in 2013.
“The contract proves LG Chem’s technological capacity to produce batteries for all electric vehicles from electric hybrid cars to full electric vehicles,” vice chairman Kim Bahn-suk of LG Chem said in an e-mailed statement.
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