Johnson Controls expanding global production of AGM batteries for start-stop systems; $555M investment from 2011 to 2020
16 September 2015
In anticipation of increasing demand for start-stop systems, Johnson Controls is adding Absorbent Glass Mat (AGM) battery production capacity. AGM battery technology is at this point the dominant start-stop energy storage technology.
The market for new vehicle and aftermarket Start-Stop batteries could rise to 56 million worldwide by 2020, compared to 22 million today. In this time frame, 85% of all new vehicles in Europe and 40% in the US and China are expected to be powered with Start-Stop batteries. With $555 million in investments between 2011 and 2020, the company is implementing plans to expand AGM production capacity in Germany, the United States and China.
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| Johnson Controls AGM battery. Click to enlarge. |
We are expecting strong growth for Start-Stop technology, and with good reason. It requires minimal changes to the vehicle and costs significantly less than battery systems in hybrid or electric vehicles. Start-Stop is the best solution to help automakers meet upcoming environmental regulations.
Johnson Controls is currently the world’s leading provider of batteries for Start-Stop vehicles and we plan to stay that way. To ensure we will continue to meet rising demand of car manufacturers and aftermarket retailers for this technology, we consider it a business priority to invest in increasing our production worldwide.
—Lisa Bahash, group vice president and general manager Original Equipment, Johnson Controls Power Solutions
In Europe, Johnson Controls has invested more than $112 million in its facility in Hannover, Germany to increase production of fuel-efficient AGM batteries by 65% since 2011. Two years ago, the company also expanded its Zwickau plant with an investment of more than $112 million, making it the world’s largest production site for AGM batteries.
In August, Johnson Controls announced additional capacity at its US plant in Toledo, Ohio, bringing the overall investment to $130 million since the start of AGM production at this site in 2012.
Johnson Controls is also planning to build a new automotive battery manufacturing facility in Shenyang, China. The $200 million plant will have the capacity to produce 6 million automotive batteries a year, including both SLI and AGM.
Start-Stop technology automatically shuts off the engine when the car is idle and restarts it when the driver’s foot leaves the brake pedal. During this time, the vehicle's electrical systems—from entertainment to lights—use energy from an advanced lead-acid battery (AGM) rather than the gas-powered engine, thus saving fuel.
The company is showcasing its AGM batteries, along with its 12V Lithium-ion battery for Advanced Start-Stop vehicles, at the International Motor Show (IAA) in Frankfurt, Germany. With the addition of a 12V Lithium-ion battery, automakers can increase fuel economy efficiency by up to 8%.
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| Johnson Controls 12V Li-ion Start-Stop battery. Click to enlarge. |
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