By Kim Yoo-chul
Staff reporter

LG Chem has won a contract from Ford Motor to supply batteries for the electric version of Ford's Focus compact vehicle, which will go on sale from 2011.

It is the second big deal the company has won in the United States following a contract for the Chevrolet Volt, GM's electric car, signed last year.

"Under the contract, we will provide lithium-ion battery packs for the Focus," the company said Wednesday. The size of the deal was not immediately known.

The announcement of the LG Chem-Ford deal comes at a time when U.S. President Barack Obama is scheduled to attend a groundbreaking ceremony for LG Chem's battery factory in Holland, Mich. On hand will be LG Group Chairman Koo Bon-moo and LG Chem CEO Kim Bahn-suk.

U.S. federal support of $151 million was given for the construction of the $300 million Holland factory, to be named Compact Power.

"LG Chem has also been talking with several European carmakers," a spokesman for the firm said.

The company expects to sign four more deals before the end of the year.

"The latest deal will pave the way for us to effectively penetrate into the highly-lucrative U.S. electric car market," the spokesman said, adding LG Chem has struck deals with seven global major carmakers including Volvo and Hyundai-Kia.

Shares of LG Chem rose by 1.1 percent to end at 320,500 won on the Korean stock market.

The electric Focus is said to have a maximum driving range of up to 100 miles on one full charge. The car is one of five electric vehicles Ford plans to market in the United States by 2012.

Separately, LG Chem said it will invest over 50 billion won in battery-related research and development to maintain its technological advantage. The company plans to hire 400 researchers by the end of the year.