From Detroit Free Press

WILMINGTON, DE -- General Motors Corp. took the occasion of its annual meeting on Tuesday to announce another step to get its Chevrolet Volt long-range electric series-hybrid vehicle into the hands of drivers.

GM awarded to Michigan-based Compact Power Inc., a subsidiary of Korean battery manufacturer LG Chem., and to Continental Automotive Systems, a division of Continental A.G., two contracts for advanced development of lithium ion batteries for the Volt.

"These battery suppliers will work closely with the GM product development team that we've challenged to bring the Chevy Volt into production as soon as we can," GM Chairman and CEO Rick Wagoner said. "Given the huge potential that the Volt and its E-Flex system offers to lower oil consumption, lower oil imports and reduce carbon gas emissions, this is for sure a top-priority program for GM."

GM has been working to electrify the automobile and in the process leapfrog Toyota Motor Corp.'s best-selling Prius hybrid as the generally accepted leader in automotive technology and fuel efficiency amid growing concern about high gas prices, the harmful effects of greenhouse gases and government moves to mandate an increase in fuel economy.

GM Vice Chairman Bob Lutz has said the E-Flex system shown in the Chevrolet Volt concept car at the Detroit auto show this year could get as much as 150 miles to the gallon. That version of E-Flex would run using a lithium battery that could get its charge from being plugged in or from a small onboard fuel tank.

GM introduced another version of the E-Flex system, which would run using a hydrogen fuel cell supported by a lithium-ion battery, in the Volt at the Shanghai auto show in April.

GM says the newly contracted suppliers have demonstrated solutions for creating a lithium-ion battery that meets the specific energy, power, mass and durability requirements for the battery in the E-flex range-extender variant. The battery for the fuel-cell variant requires half the energy and power, but must be integrated and connected to the vehicle in a similar way.

"This technology is developing rapidly," GM Director of Hybrid Energy Storage Devices Denise Gray said in a statement. "These contracts are an opportunity to deeply understand the differing battery technologies before making a product decision."

Wagoner said the E-Flex system is just one part of the effort it is making to transform the automotive industry away from being solely dependent on petroleum-based fuel.

Others include the GM diesel-hybrid system for large city buses; the Saturn Vue and Saturn Aura Green Line hybrid models; the new two-mode hybrid Chevrolet Tahoe and GMC Yukon launching this fall; the two-mode hybrid Saturn Vue Green Line; and a plug-in version of the Vue planned that has the potential to double the fuel efficiency of any current GM SUV.

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