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Japanese battery makers to expand production

Lithium, nickel cells to be made for automakers

Tom Stundza -- Purchasing, 7/2/2009 9:28:09 AM

Japanese electronics products firm Hitachi will supply lithium-ion batteries for hybrid vehicles to be made by General Motors in 2010 and sharply raise production capacity to meet surging demand for gas-electric cars. According to an Associated Press report, Hitachi currently makes 40,000 lithium-ion batteries per month and will invest around $311 million to lift the capacity to three million units.

Hitachi will also start supplying lithium-ion batteries for some hybrid cars made by Toyota Motor next year, according to the Associated Press. Toyota's hybrids now use nickel-metal hydride (NiMH) batteries but the automaker next year also will use lithium-ion batteries for some plug-in hybrid cars.

Meanwhile, Sanyo Electric says it will more than triple its production of nickel-metal hydride batteries for hybrids, citing growing demand for these vehicles made by Ford and Honda. In fiscal 2008, Sanyo made such NiMH batteries for hybrid cars at a rate of 1 million units a month. Sanyo has decided to boost production by 250% to a monthly rate of 3.5 million batteries in fiscal 2009.

See also: U.S. battery market powers up

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