Underdog Hitachi's Lithium Battery Division to Team up with Lead Acid Battery Leader Johnson Controls

Hitachi has been running large losses at its Lithium Batter Division due the the severe global competition in the international Lithium Battery Market.With huge growth expected in the Green Automobile Industry in the future,everyone is trying to establish a strong foothold in this emerging segment.Hitachi is one of the lesser known names in the Battery Industry and the company does not expect profits in the next 3 years.However the company’s fortunes in the Green Industry might change as it has teamed up with Automobile Parts Giant Johnson Controls.JCI is a multi billion US company with leadership position in the Energy Efficiency,Lead Batteries and Automobile Parts.The company has shown increasing profits and revenues in all of its division in the last quarter.It would suit both companies to design,develop  and market batteries for the Hybrid and Electric Vehicle Segments.

Note Hitachi is not present in the Lead Acid Battery Segment which is still the largest battery segment currently and will remain so in the future.On the other hand Johnson Controls with a 30% marketshare in the Lead Acid batteries has little technology presence in the emerging Lithium Battery Sector.Their Joint Venture will have complementary technologies from the Two Partners and seems a good fit.

Hitachi, Johnson Controls to tie up in batteries – Reuters

Japan‘s Hitachi Ltd said on Monday it will partner with U.S.-based Johnson Controls Inc in auto-use lithium-ion and other battery technologies as demand for hybrid cars grows.The Japanese electronics conglomerate said the two will discuss how they will cooperate in development, production and sales.

The Nikkei business daily said that if the collaboration leads to major contracts with carmakers, they will build factories under a joint venture.