LG Chem, South Korea’s leading chemical maker, said Tuesday that it has clinched a $10 million contract to develop a lithium ion battery for U.S. automakers.

Under the deal with U.S. Advanced Battery Consortium, LG Chem will develop a high-powered, high-capacity lithium-ion battery for plug-in electric vehicles by 2013, the company said.

The consortium is composed of the U.S. Department of Energy and three U.S. carmakers ― General Motors, Ford and Chrysler.

LG Chem said that the project focuses on cost-cutting efforts to lower prices of lithium ion batteries and will contribute to popularizing electric cars.

LG Chem has won four battery development projects ordered by USABC since its U.S. unit carried out a $4.6 million project in 2004.

The company is leading the U.S. market by supplying batteries for GM’s Chevrolet Volt electric vehicle and the Ford Focus.

LG Chem said that it will invest a total of 2 trillion won ($1.89 billion) in plants in South Korea and the U.S. by 2013 to expand its capacity to provide batteries for over 350,000 vehicles.

The company said that it will command 25 percent of market share and reach 4 trillion won in sales in 2015.

“LG Chem has outstanding technology in performance and the stability to lead the world’s electric car battery market,” said Peter Bahnsuk Kim, vice chairman of LG Chem. “We will focus on research and development of next-generation batteries and solidify our status as a leader in the sector.” 

(Yonhap News)