A domestic chemical company has been chosen as an exclusive supplier of batteries for a car produced by U.S. automaker GM that runs solely on electricity.

LG Chem and GM announced the deal Tuesday at the 2009 North American International Auto Show in Detroit.

GM CEO Rick Wagoner said that his company has chosen LG as the sole supplier of lithium ion polymer batteries for the GM Chevrolet Bolt sedan.

Unlike hybrid models running both on gasoline and electricity, the Chevrolet Bolt is 100 percent electric. The car will hit the market in the second half of 2010.

As part of the contract, LG will provide batteries for 250-thousand cars over the next six years.

The market for electric car batteries is expected to grow an average of 47 percent a year, which would make it a three-point-two-trillion won industry by 2012.