LG gets Obama’s blessing for US plant

By Kim Yoo-chul

Staff reporter

LG Chem was celebrating Friday (KST) after having U.S. President Barack Obama attend the groundbreaking ceremony for its new battery plant in Holland, Mich., which will be operated by the company's U.S. unit.

The plant is one of nine new advanced battery factories that are being constructed with assistance from the Obama administration's Recovery Act, which offers $2.4 billion in investments for the development of batteries and other electric-car technology that are an essential part of the country's green technology initiatives.

Batteries for electric and hybrid electric vehicles are also becoming a crucial revenue source for LG Group, which is moving to reduce its heavy reliance on consumer electronics products, and has identified a growth opportunity in the clean-energy business.

"Workers at this plant, which will supply batteries for the new Chevy Volt, learned the other day that they will also be supplying batteries for the new electric Ford Focus as soon as this operation gears up," Obama said in front of the plant's future site, in an event that was also participated in by LG Group Chairman Koo Bon-moo and LG Chem Chief Executive Kim Bahn-suk.

"That means that by 2012, the batteries will be manufactured in Holland, Mich., instead of South Korea. So when you buy one of these vehicles, the battery could be stamped 'Made in America' - just like the car," he said.

Obama also playfully approached Koo, greeting him with a "hello" in Korean and congratulating him for establishing the new plant in Michigan. Koo responded by telling the U.S. president, "Thank you for coming to our ceremony," according to LG Chem representatives.

LG Chem and the U.S. Department of Energy have split the costs of building the $303 million plant on a 50:50 basis.

The factory will begin production of lithium-ion batteries in 2012 and by the following year will be producing enough batteries for 60,000 cars, including 53,000 Chevy Volts, LG Chem said.

Batteries are central to the Obama administration's economic stimulus programs, which tout green-tech as pivotal in creating new jobs and giving the country's high-tech industries a needed boost.

"The atmosphere at the groundbreaking ceremony was upbeat," said Jeong Jung-wook, an LG Group spokesman. He said Koo and other company executives also discussed further investment opportunities with Michigan officials but declined to elaborate further.

LG 공장 기공식 오바마 축하 받아

금요일 미시건주 홀랜드에 위치한 LG화학 배터리 공장의 기공식에 버락 오바마 미국 대통령이 참석했다.

이 공장은 오바마 정부의 경기부양법에 따라 미국의 친환경 미래산업의 핵심분야인 배터리 발전연구 및 전기차 기술지원금 24억 달러를 지원받는 9개의 최첨단 배터리 공장 중 한 곳이다.

LG화학은 미국 에너지국과 함께 총 3억300만달러규모의 비용을 반반씩 부담하기로 했다.

구본무 LG그룹 회장과 김반석 LG화학 부회장이 자리한 공장부지에서 오바마는 "이 곳에서 만들어진 배터리가 GM의 신형 시보레 볼트와 포드의 전기차인 포커스에 탑재될 것"이라고 말했다.

오바마는 또 "2012년에는 한국이 아닌 이 곳 홀랜드에서 전기차용 배터리가 생산될 것" 이라며 "이제는 배터리도 차체처럼 미국산이 될 수 있는 것"이라고 덧붙였다.

오바마는 "안녕하세요"라고 한국말로 구 회장을 반기며 기공식을 축하했으며 구 회장은 "와주셔서 고맙습니다"고 답변했다고 LG화학 관계자는 전했다.

공장은 2012년부터 리튬-이온 배터리생산을 시작하고 그 다음해에는 53,000대의 시보래 볼트 등에 탑재될 6만개의 배터리를 생산할 계획이다.