Ford Selects Compact Power as Lithium-Ion Battery Pack Supplier for Ford Focus Electric on Sale in 2011

DEARBORN, Mich., July 13 /PRNewswire-FirstCall --

• Ford selected Compact Power, Inc. (CPI), a wholly owned subsidiary of LG Chem, as the supplier of lithium-ion battery packs for the 2011 Ford Focus Electric for the U.S. market

• CPI, based in Troy, Mich., will begin battery pack assembly for the Focus Electric next year and is finalizing production site selection in the U.S. The lithium-ion cells initially will be manufactured in Korea by CPI parent company LG Chem. LG Chem and CPI will be localizing cell production at their new site in Holland, Mich.

• Ford Focus Electric production will begin in 2011 at Michigan Assembly Plant; the car will have a targeted full-charge range of up to 100 miles with zero tailpipe emissions

• Ford's broad-based electrification strategy includes the introduction of five new electrified vehicles by 2012 in the U.S., including the Transit Connect Electric, Ford Focus Electric, two next-generation hybrid electric vehicles and a plug-in hybrid electric

Ford Motor Company (NYSE: F) today announced it has selected Compact Power, Inc. (CPI), a subsidiary of LG Chem, to build lithium-ion battery packs for the Ford Focus Electric, which will go on sale in the U.S. in 2011.

The Focus Electric battery packs will leverage CPI and parent company LG Chem's deep expertise in advanced flat format lithium-ion cells and advanced liquid-cooled modules and battery management systems.

"CPI is an emerging leader in the lithium-ion battery field and we are pleased to have them as a strategic supplier as we prepare to bring the Ford Focus Electric to market," said Sherif Marakby, Ford director, Sustainable Mobility Products and Hybrid programs. "We are moving aggressively with our electrification strategy and our work to help make Michigan a center of excellence for a range of electrified vehicles."

CPI, based in Troy, Mich., will begin battery pack assembly for the Ford Focus Electric next year and is finalizing production site selection for the U.S. The lithium-ion cells for the packs will initially be sourced from Korea through LG Chem. LG Chem and CPI will be localizing cell production at their new site in Holland, Mich.

"We are very excited to be partnering with Ford on their new battery electric-powered Ford Focus," said Prabhakar Patil, CEO of CPI. "It tells us we are on track in developing high-power and high-energy lithium-ion batteries that the industry needs as it moves toward the electrification of vehicles that lessen our dependence on foreign oil."

The cells will incorporate LG Chem's proprietary chemistry and its industry-leading safety-reinforced-separator technology that provides unparalleled safety performance.

Focus Electric will have a targeted range of up to 100 miles per full charge with zero tailpipe emissions. It is one of five electrified vehicles Ford is bringing to market in the U.S. in the next two years. These include the Transit Connect Electric, a small commercial van in 2010; Focus Electric in 2011; two new lithium-ion battery-powered hybrids; and a plug-in hybrid in 2012.

Focus Electric, a full battery electric passenger car, will be produced at Michigan Assembly Plant in Wayne, Mich., which will begin producing gasoline versions of the all-new 2011 Focus later this year.

Ford previously announced plans to invest $550 million to transform Michigan Assembly Plant from a large SUV factory to a modern car plant to build the new Focus and Focus Electric. The plant also will produce a next-generation hybrid and a plug-in hybrid in 2012. All of the vehicles will be built off the company's new global C-car platform.

This complements Ford's overall strategy to establish a center of excellence in Michigan for electrification of a broad range of vehicles, including lithium-ion battery-powered hybrids, plug-ins and pure electric vehicles. Ford is committed to delivering electrified vehicles as part of its overall vehicle portfolio designed to deliver both the fuel efficiency and the performance customers demand.

About Ford Motor Company

Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 176,000 employees and about 80 plants worldwide, the company's automotive brands include Ford, Lincoln and Mercury, production of which has been announced by the company to be ending in the fourth quarter of 2010, and, until its sale, Volvo. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford's products, please visit www.ford.com.

About Compact Power, Inc.

Compact Power, Inc. (CPI) is a North American subsidiary of LG Chem, one of the world's largest producers of lithium-ion batteries for automotive hybrid electric vehicles and non-automotive (commercial and military) markets. The company was formed in 2000 in the United States and is headquartered in Troy, Mich., at the heart of the automotive industry. CPI's mission is to become the supplier of choice for lithium-ion battery technology. To learn more about CPI, please visit: www.compactpower.com.

SOURCE Ford Motor Company