General Motors has announced plans to invest $240m at its Warren Transmission Plant in Michigan in the US to build electric drive unit for the second-generation Chevrolet Volt.
The Volt powertrain components and battery cells are expected to be made in the company's Michigan engineering center.
General Motors CEO Mary Barra also announced that the company will invest around $300m in Michigan region by this year.
LG Chem will be producing the battery cells for the Volt and ELR in Holland, Michigan and the Volt's vehicle's electric motors will be made in the US.
Barra said, "We must provide the breakthrough technology that our customers want.
"Our investments in the Chevy Volt and Michigan signify our commitment to lead the industry in technology and innovation."
The company expects that within the first year of production, about 70 % of the Volt's parts will be made in the US or Canada.
