First Voucher Fund, one of Russia's largest investment funds, is planning to team up with the U.S. automaker General Motors in a $50-million project to build an automotive battery factory in central Russia, company representatives said Thursday.


Alexander Morev, who supervises the factory project at First Voucher, said in an interview that his company and General Motors intend to launch construction of the plant within the next six months.


Morev roughly estimated the cost of the project at $50 million, saying that a precise figure cannot be provided until the business plan for the project is finished in March. The factory, he said, will produce 1 million batteries for cars, trucks and buses per year.


The poor quality of domestically made car batteries has forced most Russian car manufacturers to rely on batteries imported from Eastern Europe and Asia.


The new factory would manufacture more expensive but more durable batteries, with a two-year warranty, said Morev.


He said the factory would be located near the Volga River town of Togliatti, home to AvtoVAZ, Russia's largest car manufacturer. Executives from First Voucher and General Motors have already visited several defense factories in the region that could serve as sites for the new production, he said.


"They have good-quality buildings and quite a skilled work force, so why build a completely new factory?" he said.


But Victor Smirnow, chief representative of GM in Russia, said his company favored the idea of building a brand new factory, which would be ecologically cleaner.


Smirnow confirmed that the battery factory would be located near AvtoVAZ, but said it was premature to discuss a time frame for the project.


GM is expected to provide technology, equipment and training for Russian workers, while First Voucher would contribute raw materials and work force, said Morev.


Several other Russian companies might still join the investment fund in the project, he said.