LG Chem’s U.S.-based battery plant will start operations this July, marking the end of a long hiatus, the Seoul-based company said on Monday.

The plant will start supplying batteries for the Chevrolet Volt hybrid electric car as early as September.

“We plan on starting production in July following pilot production and consumer approvals in order to secure high yield and quality,” the company said in statement.

The company is focusing on improving the productivity of the plant to eventually expand supply next year. With such a goal in mind, LG Chem plans on adding two more lines ― out of the planned five ― by 2015.

Growing demand for energy-efficient hybrid vehicles in the U.S. is seen to have fueled LG’s latest move. During the first quarter, sales of environmentally friendly cars rose by more than 20 percent from the previous year.

The plant, located in Holland, Michigan, was previously caught up in reports that it had come to a halt due to a lack of demand. LG Chem explained at the time that the plant had not yet officially gone into action at the time, and was in its pilot stage.

The facility also came under the spotlight in the U.S. after receiving extensive tax incentives under President Barack Obama’s initiative for propping up the solar energy and electric-powered vehicle industry. President Obama attended the groundbreaking ceremony.

By Kim Ji-hyun (jemmie@heraldcorp.com)