
GM first announced in June 2007 that they were going to choose from one of two lithium-ion battery pack suppliers for the Chevy Volt, either LG Chem/Compact Power or A123/Continental. The decision was to come by this summer.
GM vice chair Bob Lutz indeed recently noted that the prototype packs have been operating “flawlessly”, and that GM has already decided which supplier they would use.
I asked GM sources why they might delay making public or even notifying the supplier they chose, I was told “we’ll make this info available when the time is right, but not now.”
Previously Bob Lutz had said publicly that only one of the teams’ packs were being used in the running mules because that team offered “the least risk,” but wouldn’t say which. Shortly after we learned from Compact Power that it was indeed their packs which were running in the mules.
I just recently had the chance to interview the CEO of Compact Power, Dr. Prabhakar Patil, and asked him about contract timing. We also had some other discussions which will be forthcoming.
GM said it would be in June 08 when they announced the supplier of choice. Can you say whether this has been delayed in some way, or do you not know when GM will announce their choice?
The only thing I can say is that I’m almost positive that the decision will be made this year, simply because of the timing that’s required to make the high volume manufacturing commitments, putting the lines in place and so forth to support the 2010 introduction. Beyond that its GM’s call regarding the pace and timing. So that’s a question better directed at them.
Will it require some time for a plant to be built on your end in order to roll out 10,000 packs?
I am doing my homework and doing the development that is necessary so that time doesn’t become our enemy if we are selected as the production supplier. That’s a conscious business decision.
What kind of capacity to you have right now to build those packs?
From a cell perspective, typically we will need about 12 to 18 months of lead time in order to set up a cell line and have it be “PPAP’d” (production part approval process). That’s all the way to a point where the line runs at full production speed, and what comes out meets all of the requirements.
That’s the reason why I know the decision will be made by the end of this year, because that’s simply the least time that we will need in order to be ready to go (by November 2010).