LG Chem Ltd., the world's largest battery maker, on Monday denied reports by U.S. media outlets that it has delayed starting commercial operation of its American lithium-ion battery plant, thus failing to create jobs and leaving about 200 workers idle.

U.S. media outlets including Fox News and Wood TV have reported the factory built using US$150 million of taxpayer funds is putting workers on furlough before a single battery has been produced.

"The report is not true," LG Chem said in a statement. "Our U.S. battery plant in Holland, Michigan, is in shorter-term operation, under which about 200 workers put in three-quarters of normal work hours."

The South Korean company said its employees have been trained for operation of maintenance of the plant before its commercial production.

Under a deal with U.S. automaker General Motors Corp., LG Chem broke ground for the U.S. plant in July 2010 with U.S. President Barack Obama attending, amid expectations that the plant will create new jobs.

LG Chem originally planned to start commercial production at the Holland plant in June or July of this year, but sluggish sales of the Chevrolet Volt delayed the start of commercial production at the plant, the company said.

The deal is aimed at providing lithium-ion polymer batteries for the automaker's plug-in electric car, the Chevrolet Volt, from Nov. 1, 2010, until the end of 2015.

LG Chem said it started providing batteries made in its plant in South Korea to GM from December of last year.

"The U.S. plant is still one of the most important production bases in our electric car battery business," the company said. "The plant is expected to go into full operation if demands for electric cars increase." (Yonhap News)