Chief executive Rick Wagoner told those attending the North American International Auto Show in Detroit that GM’s plant will be the first of its kind operated by a global automaker.

``The design, development and production of advanced batteries must be a core competency at GM,’’ said Wagoner, adding, ``We believe this will become a competitive advantage for GM and will be critical to GM’s success.’’

GM, which has invested more than $1bn to electrification of the automobile and to the Volt, hopes the car will boost both its financial fortunes and market share.

The Bush administration last month approved billions of dollars in government loans to prop up the ailing automaker, arguing that its collapse would have put more than one million jobs at risk and deepened an ongoing economic recession.

Compact Power in South Korea, a subsidiary of LG Chem of Troy, Mich., will build battery packs for Volt prototype cars until GM’s 31,000 square foot (3,251 square meter) plant is operational in 2010. The packs and other components are assembled into a signle battery that is roughly six feet long (1.8m) and weighs nearly 400 pounds (181 kilograms).

Beyond 40 miles, a small internal combustion engine-generator will create additional electricity to extend Volt’s driving range to several hundred additional miles. Wagoner said GM will begin Volt production in late 2010 with a sticker price for between $30,000 and $40,000.

GM is also working on other vehicles that reduce or eliminate dependency on oil including those that use hydrogen fuel cell technology and a range of biofuels.