In January, GM announced plans to build the Volt electric vehicle, which would be powered by a lithium ion battery. The company is developing a system for the Volt called E-Flex, which matches battery power with several different energy sources.

One contract will go to lithium-ion battery supplier Compact Power, Inc., based in Troy, Mich. CPI is a subsidiary of Korean battery manufacturer LG Chem. A second contract has been awarded to Frankfurt, Germany-based Continental Automotive Systems, a division of Continental A.G., a tier one automotive supplier that will develop lithium-ion battery packs. GM continues to assess other solutions to quickly bring lithium-ion batteries to production.