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Obama attends groundbreaking of LG-affiliated battery factory: White House
By Hwang Doo-hyong
WASHINGTON, July 15 (Yonhap) -- U.S. President Barack Obama Thursday attended a groundbreaking ceremony at an electric-vehicle battery factory, a subsidiary of South Korea's LG Chem Ltd., to promote the development of clean energy technology and a controversial economic stimulus program.
Speaking at the ceremony at Compact Power Inc. in Holland, Michigan, Obama said the factory, which received a $151 million stimulus grant, will allow Americans to use American vehicles equipped with U.S-made electric-car batteries.
"The workers at this plant, already slated to produce 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, according to a transcript released by the White House. "That means that by 2012, the batteries will be manufactured in Holland, Michigan, instead of South Korea. So when you buy one of these vehicles, the battery could be stamped 'Made in America' -- just like the car."
Since his 2008 campaign, Obama has repeatedly talked about the need to catch up with advanced lithium-ion battery technology in South Korea and Japan.
South Korea earlier this week announced plans to invest up to 15 trillion won (US$12.5 billion) in rechargeable batteries in the coming decade.
South Korean, Japanese and Chinese companies control 95 percent of the global rechargeable batteries market, with Japan's Sanyo at 20 percent and South Korea's Samsung SDI Co. and LG Chem Ltd. at 19 percent each. The global market is expected to grow to US$77.9 billion by 2020 from the current $12.3 billion.
The Compact Power plant is the ninth new advanced battery factory to start construction as a result of $2.4 billion in Recovery Act awards the president announced last August, the White House said in a statement.
"The project is expected to create hundreds of construction and manufacturing jobs in Holland," it said. "Once fully operational, the Compact factory will produce battery cells to support 53,000 Chevy Volts a year."
Obama defended the economic stimulus programs as being pivotal to creating jobs and energizing the country's high-tech industries. But a growing number of people have doubts, according to recent public surveys.
"Through small business loans, a focus on research and development, and investments in high-tech, fast-growing sectors like clean energy -- we've aimed to grow our economy by harnessing the innovative spirit of the American people," he said. "As many as 300 hundred people will be put to work doing construction and another 300 will eventually be hired to operate this plant when it's fully up and running. And this will lead to growth at local businesses like parts suppliers and restaurants."
Kim Ban-sok, vice chairman of LG Chem, who attended the ceremony, told reporters that he understands why LG Chem was selected by Holland City.
"We are the leading company in the rechargeable batteries industry," he said.
Kim said that LG Chem has signed contracts with seven automakers, including Hyundai, Kia, GM, Ford and Volvo, for the provision of electric-car batteries, adding LG Chem will conclude contracts with several more automakers by the end of the year.
hdh@yna.co.kr
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