Johnson Controls-Saft Advanced Power Solutions
The hybrid and electric vehicles market: an industry comes to life
Johnson Controls-Saft Advanced Power Solutions draws upon Saft's technological expertise to create value. This joint venture was formed in 2006 with Johnson Controls, a top-ranking U.S. supplier to the automobile industry, to develop, produce and market advanced lithium-ion (Li-ion) batteries. Johnson Controls-Saft capitalises on Saft's expertise in Li-ion technology to serve the rapidly expanding market for hybrid and electric vehicles. In 2007 the company built a new production line in Nersac, France. This plant, the first in the world to produce Li-ion batteries for electric and hybrid vehicles, was inaugurated in January 2008 with seven major automakers from three continents in attendance. Johnson Controls-Saft batteries equip the first series-produced hybrid vehicle, the Mercedes S400, since April 2009, and the BMW 7 Series hybrid vehicle on the market since early 2010.
Rapidly growing demand
This market has potential for significant growth. Nearly all European automobile makers have announced that they will develop clean vehicles. Market studies show that sales of hybrid vehicles reached approximately 800,000 vehicles in 2009 and could reach $3.2 billion per year by 2012. This could rise to about $15 billion per year in 2015 including plug-in HEVs and EVs, according to certain investment banks.
A global presence
Johnson Controls-Saft has established a global presence to be closer to its customers. The company has R&D centres in Milwaukee in the United States and in Bordeaux in France, in addition to the plant in Nersac. Poles of excellence in testing, engineering and integrated production are located in Milwaukee, Hanover, Germany and Shanghai, China. With its successful combination of technological leadership, commercial network and expertise in project management, Johnson Controls-Saft is well placed to become a world-class actor and the leading European supplier for this rapidly growing market. This exciting enterprise is poised to generate substantial value for its parent companies.
2009: Preparing the future
Johnson Controls-Saft initiated a second tranche of investment in 2009 lo ramp up production at its existing plant in Nersac, France. Production capacity for high-power batteries has doubled, to supply the Mercedes S400 hybrid vehicle and the BMW 7 Series hybrid, and the emerging industry for power components in plug-in hybrid and all-electric vehicles. In August 2009 Johnson Controls-Saft was selected by the U.S. Department of Energy to manufacture lithium-ion batteries and components in a new plant in Michigan. The U.S. federal government will invest $299 million in this project 150% of the total). The State of Michigan will provide funding of $148.5 million in the form of tax credits. Production is expected to start up in early 2012.
Johnson Controls-Saft signed a number of new contracts in 2009:
- to supply a complete battery system to the Ford Motor Company for its first series-produced plug-in hybrid vehicle to be launched in 2012.
- a supply contract with Azure Dynamics in the United States to equip North American commercial vehicles, marking a first success in the market for hybrid commercial vehicles.
- a second contract to supply Li-ion batteries for the Azure Dynamic Force Drive™ drivetrain that will equip the electric Ford Transit Connect utility vehicle, with series production starting in 2011.
- with Land Rover to develop batteries for hybrid vehicles, and this should lead to a future production programme.
- to supply batteries to Volkswagen for an electric vehicle fleet