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Friday, October 24, 2008

GM Picks Volt Battery Supplier

DETROIT — General Motors reportedly has selected Korean supplier LG Chem and Michigan-based Compact Power, a local subsidiary, to provide the first-generation lithium-ion battery packs for the 2011 Chevrolet Volt, according to Reuters.

Citing company sources, Reuters said the battery contract would be announced in November, possibly at the 2008 Los Angeles Auto Show, with the final terms still being ironed out.

Another battery supplier, A123, and its German partner Continental continue to work on battery development with GM.

GM spokesman Dave Darovitz on Thursday told Inside Line, "We are still evaluating [battery] suppliers. We expect to make a final announcement by the end of the year."

Watertown, MA based A123 is about to go public. The LG Chem announcement could have a negative impact on its stock price.