Stop-start battery manufacturer invests $245m to double US output
Johnson Controls (JCI) announced yesterday that it will invest $245m to 2020 in a bid to double its production capacity of electric vehicle (EV) batteries in North America and build a new battery factory in China. JCI is currently the world’s largest producer of Absorbent Glass Mat (AGM) batteries, which are recognised as market leaders in handling the “stop-start” nature of EVs. The company believes that rising consumer demand and environmental regulations will see up to 50% of cars built in North American featuring stop-start systems by 2020.

MILWAUKEE -- Johnson Controls Inc. said it plans to invest $245 million through 2020 to double North American production of absorbent glass mat (AGM) batteries for vehicles with stop-start systems.

Stop-start systems improve fuel economy as much 5 percent by stopping the engine when the vehicle halts at a traffic signal. Although it’s more expensive than a conventional lead acid battery, an AGM battery can better withstand the strain of frequent engine restarts.

The company, in a statement today, did not indicate whether it will expand an existing facility or build a new one in North America. To serve this market, the company currently produces AGM batteries at a factory in Toledo, Ohio.

Last August, Johnson Controls announced plans to expand the Toledo facility, bringing its total investment there to $130 million since production began in 2012.

By 2020, as many as half the vehicles produced in North America will be equipped with stop-start systems, according to Johnson Controls.

The company also produces AGM batteries in Europe, where stop-start systems are popular. The company produces AGM batteries in two German plants -- Hannover and Zwickau -- to handle demand in Europe, where 85 percent of all vehicles produced in 2020 are expected to have stop-start systems.

Johnson Controls also is ramping up production in China, where it plans to build a $200 million AGM battery plant in Binzhou. Construction will begin next year.

The company said today that it expects to spend $780 million from 2015 to 2020 to expand global production of AGM batteries.