Eaton Selects LG Chem Subsidiary to Supply Battery Technology for Hybrid Power Systems; Battery Cells to be Manufactured in Holland, Mich.

Date: July 15, 2010

President Obama, Mich. Gov. Granholm Attend Groundbreaking at Holland Facility

HOLLAND, Mich. … Diversified industrial manufacturer Eaton Corporation (NYSE:ETN), a global leader in the development of hybrid power systems for commercial vehicles, has selected Compact Power Inc. (CPI), a wholly-owned U.S. subsidiary of LG Chem, to provide batteries for certain future Eaton hybrid electric drive systems. The announcement was made today during a groundbreaking celebration at CPI’s new battery cell manufacturing facility in Holland that was attended by President Barack Obama and Michigan Governor Jennifer Granholm.

“The demand for hybrid commercial vehicles will continue to grow globally, and LG Chem and CPI have made important advancements in battery technology and future production capability here in western Michigan.  This technology is a key part of Eaton’s strategy to meet the future demand of our customers worldwide,” said Dimitri Kazarinoff, vice president and general manager for Eaton’s Hybrid Power Systems Division. “Additionally, we’re proud to be a key player in helping to bring these new technologies and jobs to Michigan.”

In construction of the new manufacturing facility, CPI will utilize power management technology from Eaton, including electrical components designed for energy efficiency.

Eaton offers the world’s most complete line-up of hybrid power systems for commercial vehicle applications. Eaton’s hybrid business is located at the company’s Vehicle Group headquarters in Charleston Township, Mich. near Kalamazoo. Engineering, development and testing of hybrid systems is also done at Eaton facilities in Marshall and Southfield, Michigan. 

Eaton hybrid electric, plug-in hybrid electric and two hybrid hydraulic power systems are available or in development on truck models including DAF, Freightliner, Ford,  International, Iveco, Kenworth, Mercedes-Benz and Peterbilt and on bus models from BCI, Foton, Heng Tong, JNP, King Long, Shen Long, Solaris, Yutong and Zhongtong. Eaton hybrid power systems have accumulated more than 50 million miles of road-tested service around the world and contributed to the saving of more than 1.5 million gallons of fuel and reducing more than15,000 tons of harmful emissions.

Companies such as FedEx, UPS, Coca-Cola Enterprises, PepsiCo and Wal-Mart are using delivery vehicles with Eaton hybrid systems. Work trucks with Eaton hybrid power are also in service at Florida Power and Light and many utility and telecom companies across North America. Benefits of the existing Eaton hybrid systems include fuel savings up to 35 percent, with similar percentages in emission reductions, extended brake life and idle time reductions of up to 87 percent during work site operations.

In addition to being a global leader in the development of hybrid power systems, Eaton has comprehensive facilities, field service and support to advance the electric vehicle charging infrastructure in communities across North America. Eaton has a wide range of expertise in other markets that use free-standing electrical charging, including truck-stop electrification, ports, marinas, recreational vehicles, government, and major public-sector infrastructure.

LG Chem, Ltd. is Korea’s largest chemical and rechargeable battery maker in terms of both size and performance. The company’s chemical business is vertically integrated and manufactures a wide range of products, from petrochemical goods to high-value added plastics. It also extends its chemical expertise into high-tech areas such as rechargeable batteries and the display materials field. For more information, please visit .

Compact Power, Inc. (CPI) is a wholly-owned North American subsidiary of LG Chem, one of the world’s largest producers of lithium-ion batteries for automotive hybrid electric vehicles and non-automotive (commercial and military) markets. The company was formed in 2000 in the United States and is headquartered in Troy, Mich., at the heart of the automotive industry. CPI’s mission is to become the supplier of choice for lithium-ion battery technology. To learn more about CPI, please visit: .

Eaton Corporation is a diversified power management company with 2009 sales of $11.9 billion. Eaton is a global technology leader in electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety. Eaton has approximately 70,000 employees and sells products to customers in more than 150 countries. For more information, visit .


Jim Parks