Johnson Controls expands production of Start-Stop batteries in China
Demand for fuel efficient vehicles increases
SHANGHAI—October 21, 2015—Johnson Controls is adding more manufacturing capacity for batteries that power Start-Stop vehicles in China, as its advanced energy storage solutions continue to gain popularity among automakers.
The world’s largest producer of automotive batteries is increasing production of Absorbent Glass Mat (AGM) batteries in its Changxing, Zhejiang Province facility, from 1.5 million to 3.4 million a year. Leaders from Johnson Controls and the local government participated in a ceremony at the plant commemorating the beginning of the expansion project, which is expected to be complete in 2017.
“Increasing orders of AGM batteries from customers looking to improve fuel efficiency of vehicles has prompted us to add to our manufacturing capacity, and we expect this momentum towards Start-Stop technology to continue,” said Kenneth Yeng, vice president and general manager, Johnson Controls Power Solutions China.
Currently, about 5 percent of new vehicles in China have Start-Stop systems. The company predicts this number to rise to about 40 percent by 2020 as automakers have been challenged to meet aggressive fuel economy targets set by the government.
AGM batteries are the technology at the heart of Start-Stop systems, which deliver consumers 5 percent fuel savings every time they fill up their gas tank. The engine automatically shuts off when the car is idle and restarts 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 rather than the gas-powered engine, thus saving fuel.
“Start-Stop is the best solution to help automakers meet increasingly strict environmental regulations,” said Yeng. “Being the world’s leading provider of batteries for Start-Stop vehicles, we are confident we can provide the same high-quality performing products and services to customers in China.”
Johnson Controls recently announced it will invest $555 million between 2011 and 2020 to expand AGM battery production capacity in Germany, the United States and China in anticipation of increasing global demand. In August, the multi-industrial company also unveiled plans to build a $200 million state-of-the-art plant in Shenyang, China, to produce batteries for Start-Stop vehicles.
Johnson Controls entered the Chinese automotive battery supply market in 2005 and has set up two battery manufacturing plants in Chongqing and Changxing. It also has an energy storage research and development center in Shanghai.
About Johnson Controls
Johnson Controls is a global diversified technology and industrial leader serving customers in more than 150 countries. Our 130,000 employees create quality products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles; and seating components and systems for automobiles. Our commitment to sustainability dates back to our roots in 1885, with the invention of the first electric room thermostat. Through our growth strategies and by increasing market share we are committed to delivering value to shareholders and making our customers successful. In 2015, Corporate Responsibility Magazine recognized Johnson Controls as the #14 company in its annual “100 Best Corporate Citizens” list. For additional information, please visit http://www.johnsoncontrols.com or follow us @johnsoncontrols on Twitter.
About Johnson Controls Power Solutions
Johnson Controls Power Solutions is the world's largest manufacturer of automotive batteries, supplying approximately 140 million every year to automakers and aftermarket retailers. Our full range of lead acid and Lithium-ion battery technology powers nearly every type of vehicle for our customers- including conventional, Start-Stop, Micro Hybrid, hybrid and electric. Johnson Controls' recycling system has helped make automotive batteries the most recycled consumer product in the world. Globally, 15,000 employees develop, manufacture, distribute and recycle batteries at more than 50 locations. For more information, please visit http://www.JohnsonControls.com/PowerSolutions or follow @JCI_BatteryBeat on Twitter.