Chevrolet Volt Hits Critical Milestone

BROWNSTOWN TOWNSHIP, Michigan — In another important step that brings the electric Chevrolet Volt closer to the driveways and garages of ordinary Americans, GM on Thursday announced that it has built the first lithium-ion battery pack for the hotly anticipated electric vehicle.

"This is an important milestone for GM — and a critical step in bringing the Chevrolet Volt to market," said GM Chairman and CEO Ed Whitacre in a statement.

In a media roundtable late Wednesday, Whitacre said that GM is set to bring the Volt — at least in limited supply — to market a bit earlier than expected. Regular production of the Volt is set to begin in the fourth quarter of this year in Detroit, but Whitacre hinted that small quantities of the Volt may get into the hands of consumers in the U.S. before November.

GM's Thursday announcement about the Volt battery pack is the culmination of a challenge laid down several years ago by former GM Chairman Rick Wagoner to build the battery "that couldn't be built." Industry experts such as Lux Research predict that lithium-ion batteries will become a $60 billion industry by 2013.

The first Volt battery pack was produced at GM's Brownstown Battery Pack Assembly Plant here. The Volt's milestone also is a significant step for Michigan, which is struggling to remake itself from a depressed member of the Rust Belt into the vanguard of the Green Belt.

GM is describing itself as the first major automaker to manufacture an advanced lithium-ion battery pack in the U.S. LG Chem of South Korea is supplying the lithium-ion cells to GM, which are then shipped to the battery-pack assembly plant here. Each Volt battery pack is expected to cost around $8,000.

The Volt is an electric vehicle with extended-range capability that can drive up to 40 miles on electricity alone. GM has yet to announce pricing on the Volt.

Inside Line says: A concrete step forward for GM and the Detroit auto industry, as we begin to move into a new era. — Anita Lienert, Correspondent