2009 Detroit Auto Show: Chevrolet Volt Edges Closer to Reality with GM Announcement

DETROIT — General Motors on Monday said it will build a lithium-ion battery pack manufacturing facility — said to be the first operated by a major automaker in the U.S. — to provide batteries for the electric 2011 Chevrolet Volt. The automaker made the announcement about its advanced battery strategy at the 2009 Detroit Auto Show.

Lithium-ion batteries are widely viewed in the industry as the key to making viable electric cars. The Volt is the future plug-in electric car that GM says will be a game-changer for the industry, although competitors such as Chinese automaker BYD are also rushing to market with similar offerings. The Volt is slated to go on sale in the fall of 2010.

GM said the plant will be located in Michigan, with output set to start in 2010.

"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," said GM Chairman and CEO Rick Wagoner in a statement.

The automaker said it would also beef up its in-house battery development capability by increasing staff to several hundred engineers in 2009, "including more than 200 currently dedicated to advanced battery technologies."

GM said it will join the University of Michigan in creating a new automotive advanced battery lab in Ann Arbor, Michigan. It will also set up a specialized curriculum within the University of Michigan's College of Engineering to develop automotive battery engineers.

Inside Line says: GM gets serious about building battery packs for electric vehicles, which should accelerate the push to get them into your driveway. — Anita Lienert, Correspondent