LG Chem on Monday denied news reports that operations have stopped at its overseas battery plant in Holland, Michigan, stating that it was never officially activated.

The plant, designed to produce batteries for electric vehicles, has curtailed its operations to 75 percent and has deferred the date to put the factory in full operation mode as the firm is waiting until the market condition turns favorable for electric cars, according to company officials. It now employs about 200 workers.

“Some foreign media outlets have reported that the factory workers are playing video games or card games instead of working, but this is completely not true and they are currently taking part in inspecting facilities and operational education sessions ahead of factory activation,” an LG Chem official said.

The company also said it decided to set the facts straight after exaggerated news reports were released in line with the political disputes in the U.S. ahead of the country’s presidential election between President Barack Obama and Mitt Romney on Nov. 6.

Last week, Fox News and other local media in the U.S. said that the government has been asked to investigate LG’s Michigan plant where workers are reportedly spending hours playing around.

LG Chem held a ground-breaking ceremony for the new electric car battery plant back in July 2010, which was attended by President Obama.

Endowed with a $150 million federal grant, the Korean company announced its plans to put $300 million by 2013 into constructing a factory on about 500,000 square meters of land in the city.

By Cho Ji-hyun (sharon@heraldcorp.com)