In a statement given by Compact Power’s CEO Prabhakar Patil, the company reassures the general public that it’s lithium-ion batteries are ready for GM’s 40 mile range test, in which the vehicle must run on all electric power.
Compact Power is the Detroit based unit of LG Chem, the South Korean giant, which is in the running to win the bidding for the battery supply contract of the upcoming Chevy Volt.
Patil confirmed GM is going to make a decision on a single battery supplier by the years end. The shares of that company will most likely skyrocket, as GM has already announced it will be losing money on the first generation Volt, therefore financial constraints will play a minor role compared to reliability in the selection process.
GM is on track to release the new Chevy Volt in November 2010.
Patil expects lithium-ion technology batteries to dominate the market for the next 15 to 20 years in the automotive sector.
Compact Power is in talks with other vehicle manufacturers as well to land lucrative contracts in the battery business. Projections for the company look stellar provided they are able to meet stringent supplier requirements and their product performs. Patil pegs the sales projection at $1 billion over the next 10 years, as the hybrid vehicle industry picks up steam.
