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http://www.cleanmpg.com/photos/data/2/AmericanFlag.jpg Plans for the CAFE goal (CleanMPG.com)

http://www.cleanmpg.com/photos/data/501/GeneralMotorsLGCorp03.jpgMike Sirach - CleanMPG (http://www.cleanmpg.com) - August 30, 2010

An auto manufacturer is joining forces with a supplier to design and engineer future electric vehicles. General Motors and LG Group will jointly expand a relationship built on LG’s work as the battery cell supplier for the Chevrolet Volt and Opel Ampera extended-range EVs.

The expansion of the types of electric and fuel efficient vehicles manufactured by GM is detrimental to the automaker to achieve the CAFÉ mandated mpg average of 54.5 mpg by the end of the 2025 model year. Vehicles without any emissions will play a major role in achieving this goal.

The definitive agreement will help GM expand the number and types of electric vehicles it makes and sells by using LG’s proven expertise in batteries and other systems. For LG, the arrangement represents a widening of its portfolio as an automotive solution provider.

“Many solutions for tomorrow’s transportation needs may be available more quickly by building on our partnership strategy,” said GM Vice Chairman Steve Girsky. ”Consumers benefit by getting the latest fuel-saving technology faster if we work with the best suppliers and we save time and money in the development process.”

The GM-LG relationship that began with LG delivering the cells for the battery pack of the Chevrolet Volt and Opel Ampera expanded last year with work on a demonstration fleet of Chevrolet Cruze electric vehicles. These vehicles were used as official vehicles of the G20 summit in Seoul are now in the phase of market-testing to learn more about capabilities and requirements.

“This is a strategic development for LG and we fully support GM’s goal to lead the industry in the electrification of the automobile,” said Juno Cho, president and chief operating officer of LG Corp.

Timing of the launch of the first vehicles resulting from the partnership will be announced closer to market readiness. The agreement does not involve an exchange of equity between the companies.

Will LG let GM experience their slogan: "Life is Good?"

Hi Mike:

If anybody has their hands on the pulse of the affordable HEV/PHEV/BEV battery market, its LG Chem. If they can produce packs in sufficient quantity at prices that are sure to go down rather than up ($10K for a Volt pack today leads to $10K for a 32 to 48 kWh, 80-120-mile AER BEV in just three to four years), I think GM may be saddling themselves with a winner. What surprises me however is that once the R&D for a given chemistry is done, creating a pack is but a small fraction of the price charged. With the Volt pack set to last 10 + years and 150K + miles, adding more prismatic packs should not cost much more in R&D and if this is anything like Korean TV’s, expect prices to fall quickly making mass market affordability just a few short years away. It is not like we have said that before either ;)

Wayne

The cost is in the materials used to make the cells, cathode, anode, separator and the electrolyte.. assembly and testing/sorting is automated and thus cheap. So its just an issue of making those components affordable, if you start using cobalt then that is an expensive material. I would think a vertically integrated company that made all those components would have the best price for a completed cell.

There is some talk of replacing the electrolyte and separator film with a conducting gel, that would drop the cost quite a bit... higher energy density and thus a lower need for materials will drop the cost also.

But why is GM doing this?, either they are not fully committed to bevs or they dont have the capital to build all the components, or the US based OEM suppliers are too expensive and they just want another source of cheap E components made in the East. Perhaps the future US manufacturing will be GM making the chassis, painting, and final assembly with imported low cost components. It may be the only way to bring down the cost.