GM set to grant LG Volt battery contract

General Motors Corp, the biggest US automaker, is poised to name a unit of South Korea's LG Chem Ltd the winner of the first battery contract for the Volt electric car, people familiar with the matter said.

The deal is part of an announcement yesterday on electric-vehicle technology that includes GM's plan to assemble battery packs at one of its factories, said the people, who asked not to be identified because the plans aren't public yet.

Awarding the contract ends GM's review of cells from LG Chem's Compact Power Inc subsidiary in Troy, Michigan, and a unit of Continental AG using technology developed by GM and A123Systems Inc Batteries based on A123's technology may be used in the future, the people said.