UPDATE 1-LG Chem to invest $794 mln in new car battery plant
SEOUL, June 10 (Reuters) - LG Chem, South Korea's largest chemicals maker, on Wednesday said it would invest 1 trillion won ($794.4 million) in a new electric-car battery plant over the next four years despite the financial troubles facing key customer General Motors Corp GM.N.
LG Chem (051910.KS) aimed to derive total revenue of 2 trillion won from its battery business in 2015, or a 20 percent share of the projected 10 trillion won global market, it said in a statement.
The chemicals maker said it expected the number of electric cars on the road to swell to 4.6 million in the same period.
Earlier in the year, Compact Power Inc, a Troy, Michigan-based unit of LG Chem, secured the contract to build batteries for GM's plug-in Volt, the centrepiece of the troubled carmaker's effort to move away from gasoline-thirsty trucks and SUVs.
The new battery plant will be set up in Ochang, south of Seoul.
LG Chem reiterated that it was on track to supply lithium-ion batteries for GM's Volt and was confident that the all-electric car would be launched in late 2010 as planned, despite GM's financial troubles.
GM, which filed for bankruptcy protection about a week ago, has asked for $2.6 billion in low-interest loans from the U.S. Energy Department programme to support the development of three new hybrid vehicles.
LG Chem will also supply lithium-ion batteries for hybrid vehicles set to be launched next month by South Korea's top carmaker Hyundai Motor (005380.KS).
Shares in LG Chem rose 1.04 percent as of 0200 GMT, underperforming the wider market's 1.84 percent gain.
(Reporting by Angela Moon; Editing by Jonathan Hopfner and Chris Lewis)
