Joint venture to supply electric vehicle batteries

Johnson Controls and Saft Batteries launch joint venture to supply advanced-technology batteries for electric vehicles and hybrid electric vehicles.

Johnson Controls and Saft Batteries have launched a joint venture to supply advanced-technology batteries for current- and future-generation hybrid-electric vehicles (HEVs) and electric vehicles (EVs).

The official start-up of the joint venture was announced at the 2006 North American International Auto Show in Detroit.

The venture covers worldwide development, production and sale of nickel-metal-hydride and lithium-ion batteries for HEVs and EVs.

Johnson Controls and Saft are combining their development teams within existing locations, and plan to develop manufacturing sites based on market demand.

The companies are also combining their sales and marketing resources.

Current HEVs rely on nickel-metal-hydride batteries.

Within the next several years, lithium-ion batteries are likely to become the preferred choice because they have advantages in size, weight and power-storage capacity.

Gregg Sherrill, Group Vice President of Johnson Controls, said: "Together, we will accelerate our participation in the HEV market, and drive to develop, commercialise and supply innovative power-storage technologies for environmentally friendly vehicles".

John Searle, Saft CEO, said: "The benefits of the combined resources of our two companies give us confidence that we will achieve significant market breakthroughs in the next 12 months".

Johnson Controls in September 2005 opened a lithium-ion battery development laboratory in Milwaukee, Wisconsin, USA, which will become part of the joint venture.

Saft has been developing lithium ion batteries for the automotive industry for 10 years and has recently delivered prototype batteries to major car manufacturers in the US and Europe.

Both companies have also done work in lithium-ion battery development sponsored by the US Advanced Battery Consortium.

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