January 12, 2009 10:42AM

DETROIT -- In a major economic development win for Michigan, General Motors Corp. will build a lithium-ion battery pack manufacturing plant in the state, GM Chairman Rick Wagoner said this morning.

Speaking at the North American International Auto Show, Wagoner also said GM will build the largest advanced battery development center in the United States in Michigan. And the automaker also will form an advanced battery research partnership with the University of Michigan that will train students to become battery engineers.

The battery manufacturing plant and the research center are subject to negotiations with state and local governments over financial incentives to build the centers. The Michigan Legislature recently passed legislation to give battery manufacturers $335 million in tax creates to locate plants here.

Wagoner said the batteries GM manufactures will be used in the Chevrolet Volt plug-in hybrid, expected to go on sale late next year. The exact location of the plant hasn't been determined.

"Yes, GM is getting back in the battery business," Wagoner told journalist at the auto show.

GM used to make automotive batteries under the Delco brand.

Wagoner also said GM has selected Korean battery maker LG Chem to make the individual battery cells used in the packs GM will manufacture. LG Chem has a partnership with Compact Power in Troy to make battery cells.