U.S Swaps Mideast Oil for Asian Technology: GM's Battery-Run Chevy Volt Uses S. Korean Jolt

CINCINNATI (TDB) -- Ohio has invested millions in its Third Frontier program looking for cutting edge tech to revive its auto industry. It might have to wave sayonara. When the new factory to build lithium-ion battery power packs for GM's Chevy Volt electric car opened today on Interstate 75 south of Detroit, the alternative energy source came with South Korean roots. Compact Power Inc., the American unit of Korean battery maker LG Chem, suppplies the batteries. Yes, the Asians are at the forefront of the movement for fuel-efficient electric vehicles. Going green means exporting more greenbacks. As Alisa Priddle notes in the Jan. 7, 2010 Detroit News:

"LG Chem makes the battery cells that will power the Chevrolet Volt and Opel Ampera extended range electric cars, as well as future GM vehicles requiring batteries."

LG says on its website that it's a $14 billion industrial giant:

"LG Chem Ltd. is one of the world's largest producers of advanced chemicals and materials in and a leading supplier of lithium-ion batteries. The $14 billion, Korea-based company employs over 14,000 people worldwide and comprises three primary businesses: chemicals and polymers, industrial materials, and information and electronic materials. Lithium-ion batteries are part of LG Chem's Information and Electronic Materials business and have been identified as a primary growth area for the company. In fact, investment in lithium-ion batteries has grown five-fold over the past seven years.

"As a recognized leader in the development and production of lithium-ion batteries, LG Chem provides expertise, synergies and a respected global brand that adds value to CPI's mission to become the supplier of choice for lithium-ion batteries."

Up in Michigan, Wizardkitten is encouraged that some new jobs have arrived in the Midwest after battery production started today. There is a case to be made that foreign investment is a good thing in this global economy. But wouldn't it be better if a U.S. company was behind the batteries that are supposed to bring us a green economy.

Ford's Electric Car Project Ramped Up By Europeans: Meanwhile, Ford Shutters Ohio Plants And Dealerships

CLEVELAND (TDB) -- As Ford Motor Co.'s fortunes sink to a low point, the U.S. automaker has been forced to close dealerships and factories in Cincinnati and the Cleveland area. Meanwhile, European entrepreneurs backed by Silicon Valley investors have purchased the electric car project Ford abandoned in 2003. The Think City model (pictured above) -- which resembles a Smart Car powered by a battery -- is being manufactured in Norway. The factory is running. And the goal is to enter the U.S. market with a product that Ford walked away from after spending hundreds of millions for research and development. If a U.S. plant for Think does open, the aim is to put it in Southern California. Ohio economic development officials ought to start seeking out the project -- with $5 gas around the corner, the electric car that wasn't in Ford's future should be in Ohio's. From the LA Times:

"The company, (previously called Pivco) began in 1991 and by 1999 had built more than 1,000 small and charismatic electric runabouts, sold mostly in Norway (where you still see a few on the road). Then, in 1999, the company was bought by Yankee giant Ford Motor Co., which was scrambling at the time to comply with California's Zero Emission Vehicle mandate, essentially requiring automakers to build fleets of electric vehicles. Ford renamed the company Think Nordic and began a complete redesign of the car. When, in 2003, the American automakers succeeded in modifying California's mandate, Detroit's flirtation with electronic vehicles ended. General Motors Corp. famously killed the EV1 program, and Ford sold think to a Swiss electronics firm."