Reuters has just reported inside sources have confirmed that GM has chosen LG Chem along with Troy, Michigan-based Compact Power Inc. to supply the lithium-ion battery packs for the first generation Chevy Volt.
The contract will be announced in November and the terms are still being worked out.
GM and Compact Power are apparently working out the details of the commercial agreement and how to split warranty costs for the batteries.
GM hasn’t confirmed these reports but an LG Chem spokesman in Korea stated “we were informed that the results are due in November, but we didn’t get any official answer from GM yet. We hope for and expect a good result.”
As we have heard before in a subtle way from GM vice-chairman Bob Lutz, GM was only using one supplier’s packs in the mules. Concurrently, we had heard from Compact Power’s CEO that his batteries were being used in the mules. Sources have now confirmed this is the case and that the mules packs are performing flawlessly.
A123/Continental could still potentially supply Volt packs in the next generation.