MILWAUKEE and PARIS — Johnson Controls and Saft have signed a memorandum of understanding to form a joint venture for advanced technology batteries to accelerate their participation in the hybrid vehicle market.
The joint venture will develop, manufacture and sell, on an exclusive basis, nickel metal hydride and lithium ion batteries for hybrid electric vehicles (HEVs) and electric vehicles globally. The two companies expect the joint venture agreement to be finalized in early 2006 and will commence joint sales and marketing activities immediately.
Nickel metal hydride is the technology used in hybrid vehicles today and for, at least, the next several years. Lithium ion technology, however, is expected to become the preferred hybrid battery technology in future years due to its smaller size and increased power.
The new joint venture will provide global automakers with expanded sourcing options and production capacity for nickel metal hydride battery systems. Each company is also contributing complementary capabilities to the development and commercialization of next generation lithium ion battery systems. The two companies will combine their development teams within existing locations and will invest in state-of-the-art manufacturing facilities in line with demand.
The rapid rise in fuel prices has substantially increased the outlook for hybrid vehicle production. This new partnership will support the joint venture’s customers’ expedited hybrid programs and help ensure the availability of HEV battery systems with best-in-class technology and reliability.
“Johnson Controls’ established, long-term relationships with global automakers as a Tier 1 supplier, and Saft’s advanced battery technologies combined with the strong research, development and engineering capabilities of both companies, will put the new joint venture in a unique position to compete in the hybrid vehicle market,” said John Searle, CEO of Saft.
Gregg Sherrill, Johnson Controls’ group vice president and general manager said, “Saft’s expertise with high-performance advanced battery technologies greatly complements our high volume manufacturing capabilities and our automotive knowledge. By working together, we will be able to provide industry-leading batteries for the HEV market globally.”
Saft is involved in the design and manufacture of advanced technology batteries. Saft Batteries are used in high performance applications such as industrial infrastructure and processes, transportation, space and defense. For more information, visit Saft at saftbatteries.com.
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