Though the choice was between two firms, reports suggest that General Motors chose LG Chem to supply lithium-ion batteries for the highly anticipated 2011 Chevrolet Volt.
According to Reuters, the two companies are presently in negotiations and are expected to formally announce the contract in November. Both are finalizing the details of how to split warranty costs for the batteries. The contract is expected to cover the first generation of Volts with options to extend the partnership to later iterations of the Volt as well.
GM expects to produce 10,000 Volts in the first year of production and to then ramp that number up to 60,000 units over time. The battery is expected to add $10,000 to the price of the car but the government says that it will approve tax breaks of $7500 for plug-in hybrids like the Volt.
As an extended-range electric vehicle (EREV), the Volt was designed to travel 40 miles on electricity alone and is capable of being recharged overnight from a standard power outlet. It will also have a 1.4-liter gas engine that will kick in once the 40-mile limit has been passed.