Automotive batteries: the news, the market, the future..

Battery prices to escalate in India as lead price pressure takes its toll

2007-07-23T10:24:00.000+01:00

As rising lead prices add pressure to battery manufacturers, last week Exide Industries announced price increases of between 7.5 and 10 per cent in India.

Exide, India's biggest battery maker, increased prices by 5-6 percent in January and by a similar degree in April and June. Rival Amara Raja Batteries Ltd. also raised prices by 6 percent in April.

JCI announces preliminary China agreement

2007-07-23T10:20:00.000+01:00

According to the Business Journal of Milwaukee Johnson Controls has announced a preliminary agreement to with Fengfan Ltd to manufacture, sell and service lead-acid starter batterises in China.

More than batteries - all things green

2007-07-06T15:30:00.000+01:00

Earlier today I received an email from Matthew Beecham (one of just-auto's research authors). He pointed out a newly discovered site with lots of info on car batteries - and all things "green". With this one of the hot issues of the moment, here is the link.

Thanks Matthew.

http://www.greencarcongress.com/batteries/index.html

Mitsubishi joins large lithium battery JV

2007-05-08T16:29:00.000+01:00

GS Yuasa Corporation, Mitsubishi Corporation and Mitsubishi Motors Corporation have begun collaboration on establishing a joint venture company to manufacture large capacity and high performance lithium-ion batteries that can be used in electric vehicles.

The three partners aim to complete the details and set up the new company sometime within the next six months.

GS Yuasa is expected to own a 51% share of the new company, with MC and MMC owning 34% and 15% respectively. The new company's headquarters will be located within GS Yuasa's Kyoto head office.

During the first stage of development, JPY3bn will be invested to install automated mass production lines within GS Yuasa's Kyoto head office plant, capable of manufacturing 200,000 cells per year. Operations are expected to commence by 2009.

The three partners said application of large lithium-ion batteries is expected to increase dramatically across a wide variety of industries, including automobiles. Construction of systems that can quickly meet these market needs has become a vital issue.

GS Yuasa possesses advanced technologies in large lithium-ion batteries and is striving to broaden their applications. Meanwhile, MC intends to enter the battery manufacturing business and aims to create other related businesses as well. MMC is working to increase the use of the 'cleanest' possible vehicles.

The three companies decided that by combining their unique strengths, they could exhibit optimum synergy through the establishment of this new company.

Note: this is an excerpt of the story from just-auto.com - the full story requires you to register.
http://www.just-auto.com/article.aspx?id=91251&lk=alrt1&amd=3627

New joint venture to focus on lithium-ion batteries

2007-04-13T16:03:00.000+01:00

My personalised battery alert system on just-auto flagged up a new automotive news story today...

Nissan Motor Company, NEC Corporation and its subsidiary, NEC Tokin Corporation, are forming a joint venture company - Automotive Energy Supply Corporation (AESC) - to focus on lithium-ion battery business for wide-scale automotive application by 2009.

JAPAN: Nissan Motor forms lithium-ion battery JV

HINT: Whilst the story is only available to just-auto members, you are given a free two-week trial membership by going through registration.

New hybrids report

2007-04-02T18:59:00.000+01:00

Respected publisher and just-auto research supplier, SupplierBusiness has just released a new report looking at the hybrids sector.

The report is just over 200 pages in length and includes profiles of all the key hybrid suppliers in the industry. It provides an excellent market overview and covers in depth technological aspects of the sector.

The report costs around £740 GBP and is called the Hybrid Vehicles and Components Report. It is available to purchase in PDF format from the just-auto research store.

New Lead-Acid battery technology from Firefly Energy Inc

2007-03-23T16:01:00.000Z

I came across this company today whilst looking at lead-acid batteries on wikipedia. They look very interesting indeed. Their goal - to improve the traditional lead-acid starter battery using new materials for the battery grids.

Their description of the technology is thus...

In the advanced battery architectures that Firefly has perfected, the carbon-graphite foam “grids” are impregnated with a slurry of lead oxides which are then formed up to the sponge lead and lead dioxide in the normal fashion. Because of the foam structure, the resultant negative and positive plates have enormous surface-area advantages over conventional lead acid grid structures. This results in much-improved active material utilization levels (i.e. from the historical 20-50% up into the range of 70-90%) as well as enhanced fast-recharge capability and greater high-rate / low-temperature discharge times.

There's a white paper on the technology here.

So - how's the company doing?

Well, they've already won two contracts from the US Army worth around $5m to develop batteries capable of withstanding the Middle Eastern heat.

"Batteries designed to last four years often survive just six months in the Iraqi heat", said co-founder Mil Ovan.

The company is also developing batteries to power a tank's instruments without having the engine running. A feature termed "silent watch".

But it's not just about the military applications...

Firefly are working with the Swedish firm Husqvarna, the largest manufacturer of lawn mowers in the world, to complete minor design changes called for by the company on a battery product by early 2008.

With "three to five projects running in parallel," Firefly is growing quickly, said co-founder and CEO Ed Williams. An additional 10 people will be added to the firm's 25-person staff this year, he said.

A number of automakers have also visited the firm's Peoria offices to discuss future energy plans, he said.

For further information visit their site at http://www.fireflyenergy.com

Batteries in China NEW US industry forecasts to 2010 & 2015

2007-03-23T00:38:00.000Z

Market research veterans, Freedonia, have announced a new report into the battery market in China. The report includes sections on lead-acid and hybrid batteries. At just $4,900 the report is a must for battery manufacturers, or related service companies looking to the ever-expanding Chinese market.

Report: Batteries in China NEW US industry forecasts to 2010 & 2015

Exide wins contract to supply Toyota Tundra batteries

2007-03-20T16:16:00.000Z

just-auto has just reported that Exide Technologies has announced a supply agreement with Toyota in North America to ship lead-acid starter batteries. The story is below.

Exide Technologies has announced a supply agreement with Toyota Motor Engineering & Manufacturing North America under which it ships lead-acid starting batteries for Tundra trucks assembled at Toyota Motor Manufacturing, Texas, in San Antonio.

The automaker's $US1.28bn assembly facility began operations in November 2006.
According to the terms of the supply contract, Exide will provide 24 and 27 starting batteries — with an annual capacity of 200,000 units — for the Texas-produced Tundra truck. The batteries are manufactured at Exide's Bristol, Tennessee facility and shipped from Exide's San Antonio branch.

Exide also supplies Toyota with batteries for its North American-produced Camry and Avalon cars, and Sequoia sport-utility vehicles. The new supply agreement continues a long-standing relationship that began in 1988.

Source: www.just-auto.com

California awards contract to develop PHEVs

2007-03-14T16:17:00.000Z

Quantum Fuel Systems Technologies Worldwide has been awarded a $US2.1m contract by California's South Coast Air Quality Management District (AQMD) to develop and demonstrate plug-in hybrid electric vehicles (PHEVs).

Quantum will supply 20 Ford Escape PHEVs for demonstration in Southern California.

http://just-auto.com/nd.aspx?id=90720&lk=alrt1&amd=3627

Edmunds.com ask - when is the plug in car going to be available

2007-03-13T16:30:00.000Z

An amusing article on the Edmunds.com site based on a their session with GM's PHEV team for a status report on battery development. Whilst an enjoyable read, the question that remains unanswered is "Why haven't GM released a plug-in hybrid yet?"

http://blogs.edmunds.com/strategies/.ee99159

Battery market set for growth according to Frost and Sullivan

2007-03-12T15:19:00.000Z

According to Frost and Sullivan the global automotive lead-acid battery market was worth $14.19billion in revenues in 2006, with forecast growth of 3.5 per cent every year.

Growth is being driven by the economic growth in the Asian region. However, rising lead prices, and costs not always passed on to the end-user is putting pressure on suppliers.

"This increase in lead prices cannot always be extended to the customer, thereby putting enormous strain on the profitability of the manufacturers," says Frost & Sullivan Research Analyst Suba Swaminathan.

The full press release is available here

Bosch started manufacture of EBS

2007-03-02T16:18:00.000Z

Bosch has started manufacturing the electronic battery sensor (EBS) system to help avoid the most common cause of vehicle breakdowns - a discharged battery.

Bosch's new MEMS sensor monitors car batteries > on Small Times

US: Former Ford hybrid expert heads battery JV

2007-03-02T16:15:00.000Z

http://www.just-auto.com/article.aspx?id=90602&lk=blog

Mary Ann Wright has joined the Johnson Controls-Saft joint venture as CEO.

In addition to leading JCS, Wright will also be vice president and general manager, hybrid systems for Johnson Controls, reporting to Alex Molinaroli, president, of the supplier's power solutions unit.

Wright was previously head of engineering, product development, commercial and programme management at Collins & Aikman, a supplier currently operating under US Chapter 11 bankruptcy protection, and which is being broken up for sale of individual units.

GM Volt - plug-in hybrid

2007-01-29T19:27:00.000Z

Anyone got any thoughts on the GM Volt? Is plug-in the way to go? Workable concept?

Long time no update

2007-01-22T10:13:00.000Z

Yes, well sorry, but it has been a while since the blog was updated. What with Christmas and a long weekend break in New York, end of year budgets, 2007 sales and marketing plans and tax returns, I've had my time taken up.

Anyway, I'm back now with most of my distractions (like running a business called Aroq) put to one-side (well not quite, but I'm getting there).

So what's new in the battery world?

Well I noticed that Yuasa in the US are seeking a new Director of Purchasing.

I've also been working on a new web site which will pull together the latest news on the sector, research and this blog. Stay tuned to hear more in the next month or so.

No new EV1 but the Wagon rolls on

2006-12-04T11:42:00.000Z

The L.A. Auto Show proves that, if you wait long enough, you are bound to see old ideas gain new traction .. again.

In reiterating support for electric vehicles, GM Chairman/Chief Executive Rick Wagoner explained that "electric-powered" can mean a zero-emissions fuel-cell car of the future or a "hybrid" that uses both gasoline engine and an electric motor powered by batteries .. but no new EV1. Good to see the electric car shown 100 years ago at the LA show is still on their minds!

Now ... about my latest idea for a steam driven, two seater sports coupe .. investment offers anyone?

Varta for China

2006-12-04T11:33:00.000Z

Well, after Johnson Controls bought US auto spare parts provider Delphi's global battery business last July, it seems it was solidifying it's move into developing markets servicable from China. It will be using the the firm's wholly owned Shanghai business to produce VARTA batteries and doubling production capacity to 6 million units in 2007. It also plans to open 20 flagship stores across the country.

You cannot help but realise that China moved from an emerging market to a developing one with a speed that defied even the most optimistic predictions only 5 years ago.

Ultracapacitors to help extend battery life?

2006-11-06T11:40:00.000Z

Interesting article on the rise of new ultracapacitor technology.

" ... many newer automotive designs place the battery in the trunk area, which requires running a heavy, rigid, expensive, 70-90 mm copper cable the length of the car to provide sufficient starting current. However, he noted that a system employing a small ultracapacitor-based power module located near the starter can be charged by a lighter, flexible, less expensive, 16-25 mm cable, a lighter, less complex wiring design, using less copper. Kurz added, "Our calculations show that the system will pay for itself by lowering wire harness cost and reducing the size and extending the lifetime of the battery, as well as contributing to improved fuel efficiency by lowering vehicle weight."

EU set inquiry deadline for 4th December 2006

2006-11-02T08:42:00.000Z

AFX reports that the European Commission has set the deadline for its inquiry into Johnson Control's proposed acquisition of Italian auto battery manufacturer Fiamm Group for 4th December 2006. The privately held Fiamm Grouph has annual sales of around $241 million.

US: Diversification pays off for Johnson Controls

2006-11-02T08:36:00.000Z

US: Diversification pays off for Johnson Controls

A strategy of diversification designed to reduce dependence on auto industry earnings paid off as Johnson Controls announced 2006 fourth quarter operating income rose 16% to $505m, up from last year's $436m.

Income from continuing operations was $368m versus $292m, an increase of 26%. Sales totalled $8.2bn, up 18% from $6.9bn in 2005.

Fourth-quarter earnings per share increased 24% to $1.86, compared with $1.50.

For the 2006 fiscal year, sales rose 17% to $32.2bn from $27.5bn. Income from continuing operations increased 36% to $1.0bn from $757m due to higher operating income, a lower 2006 tax rate and non-recurring tax benefits. Diluted earnings per share from continuing operations in 2006 were $5.25 versus $3.90.

While Johnson’s building and power solutions divisions recorded healthy rises, sales at its vehicle interior ‘experience’ division were off 11% to $4.0bn, due primarily to lower North American vehicle production volume. North America sales were 19% lower reflecting the overall market and unfavourable light truck exposure.

Huron County students net three awards for wind-powered vehicle

2006-11-02T08:28:00.000Z

Somehow I can't see this catching on just yet - but wind powered vehicles? Interesting...

Huron County students net three awards for wind-powered vehicle

A group of engineering students called "Breaking Wind" picked up the Innovation Award, the Presentation Award and the Founders’ Award for their Innovative Vehicle Design (IVD) project, the result of a $10,000 grant from the Convergence Education Foundation.

The foundation initiated the project, which is designed for high school students to stimulate innovative thinking by blending engineering, science, math and advancing technologies to create an alternative fueled vehicle.

The Huron County team received its trophies during a press conference at Convergence 2006 at Cobo Conference and Exhibition Center in Detroit. Seven awards were presented.

The IVD project was a small blue one-person car named Aeolus that operated with two 12-volt batteries powered by wind energy garnered by a 24-volt wind turbine. When the batteries would run low, they would be recharged by hooking up the turbine to the vehicle and letting the wind work its magic. The team picked wind power as its alternative energy because Huron County has been determined to be an ideal source for wind energy and wind farms are in various stages of development.

Delphi settles SEC fraud charges

2006-11-02T08:25:00.000Z

Delphi settles SEC fraud charges

Delphi settles SEC fraud charges which include one charge in Q42000 when it sold $270 million of metals, automotive batteries and generator cores to two third parties at year end, while simultaneously agreeing to repurchase the inventory in the following quarter for the original sales price, plus interest charges and structuring fees. The purpose and result of the schemes was for Delphi to inflate its cash flow from operations by $200 million, engineer $270 million in inventory reductions and improperly report $80 million in net income.

Amara Raja Q2 net up 177%

2006-11-02T08:07:00.000Z

Amara Raja Q2 net up 177%

Industrial and automotive battery manufacturer, Amara Raja Batteries reported a net profit of Rs. 127.11 million for the quarter ended September 30, 2006, an increase of 177% over the corresponding quarter.

It reported revenues of Rs. 1320.21 million for the second quarter of FY07, registering a quarter on quarter growth of 51%. Revenues for the corresponding quarter ended September 30, 2005 stood at Rs 870.71 million.

The company has a pan-India sales and service network with 136 franchisees, 99 PitStops and over 12,500 active retailers.

About Amara Raja Batteries Ltd (ARBL)
ARBL is the largest manufacturer of Standby Valve Regulated Lead Acid (VRLA) batteries in the Indian Ocean Rim comprising the area ranging from Africa and the Middle East to South East Asia. The company is based in Chennai, with a fully integrated manufacturing unit for its industrial batteries at Tirupati.

Amara Raja is in a strategic partnership with Johnson Controls Inc.. With this, ARBL is in Global Supply Alliance with Varta AG of Europe and Enertec, who are joint venture partners of JCI in South America and Mexico.

ARBL's automotive OE clients include Ford, GM, Daimler Chrysler, Ashok Leyland, TELCO, and Mahindra & Mahindra.

It claims to be the market leader in India in the VLRA segment with 42% market share and is among the top ten in the world. Its products are marketed under the brand names: Power Stack and Power Plus.

In September 2001, the company expanded production operations increasing existing production capacity from 500,000 units of automotive batteries, to 1 million batteries a year. It has invested Rs 45 crore in this venture at this automotive plant at Karakambadi in Tirupati. The company has chalked out a two-phase production enhancement programme, this being the first. In the second phase, the capacity will be increased to 2 million units at an additional cost of Rs 25 crore. This is estimated to take around three years. The plant will cover a built up area of over 200,000 sq.ft.

The company in keeping with its growth strategy has invested Rs 882 million to increase automotive battery capacity by 50% from 3.6 million units per annum to 5.4 million units per annum. The expansion is expected to complete by the second quarter of FY 08.

C&D Technologies forecasts hit by rising lead prices

2006-11-02T07:56:00.000Z

UPDATE 1-C&D Technologies sees higher losses, shares fall

Reuters reports that C&D Technologies Inc. is forecasting weaker quarterly results due to increased raw material costs, and said it was closing a facility at its power electronics division.

The company provides electrical power storage systems for the standby power and motive power markets and produces electronic power supply and conversion products for large original equipment manufacturers (OEMs) of telecommunications, networking, office, industrial and military equipment.

C&D has a global manufacturing platform with plants located in the United States, United Kingdom, Mexico and China and sells its products globally in more than 65 countries to over 5,000 customers.

The company, said third-quarter losses would continue to worsen and the trend would persist through the end of the current fiscal year. Despite posting losses for the last two quarters, the company had earlier expected to return to profitability in the fourth quarter. However, an unprecedented rise in the price of lead was affecting its results. C&D, which had recently increased prices for its lead-containing products, expects positive impact from the price increases only after they take effect later in the fourth quarter.

The company's customers include end users in an array of industries, dealers of forklift trucks and other material handling vehicles and, to a lesser extent, OEMs of forklift trucks and material handling vehicles. Through its direct sales force and distributor network, C&D sells to end users in industrial manufacturing, retail distribution and airline ground support. The company's batteries and motive power systems are marketed and sold under the C-Line Classic, Em-Line and V-Line, FR, IFR, Versacharge and VFR brands.

Shares of the company were down about 18 percent to $5.45 in afternoon trade on the New York Stock Exchange.

JCI announces intention to acquire Fiamm's Italian plants and European sales and warehousing facilities by end of year

2006-11-01T19:23:00.000Z

http://www.varta-automotive.com/eng/index2.php?p=3&content=news/index.html
Posted on the Varta web site... dated 26 October 2006

Hannover Germany and Milwaukee USA - Johnson Controls, Inc. (NYSE: JCI), the leading global provider of automotive batteries, today announced it has reached a preliminary understanding concerning the acquisition of Fiamm’s automotive battery business.

Specific terms of the agreement were not disclosed.

Fiamm is a privately held global player in automotive components (starting batteries, acoustic warning devices, horns and antennae) and stationary batteries. Headquartered in Italy, it has annual sales of €460 million.

The business to be acquired, which has annual revenues of approximately €190 million primarily associated with the automotive aftermarket, would include Fiamm’s battery operations in Avezzano and Veronella Italy along with sales and warehouse operations across Eastern and Western Europe.

Fiamm’s Mlada Boleslav Czech Republic plant is not included in the transaction. The acquisition enables Johnson Controls to expand its aftermarket presence throughout Europe, including the fast growing Eastern European countries. In addition, Johnson Controls will bring its world class quality and product & process technology to Fiamm customers across Europe.

“We expect that this acquisition will enable us to expand our presence in key European markets and more effectively provide pan-European manufacturing and outstanding services to the aftermarket customer base in Europe,” said Walther Wever, vice president and general manager of the power solutions business in Europe and president of VARTA Automotive AG.

“This acquisition allows us to add some powerful regional brands, like Fiamm and Akuma, to our portfolio of brands that already includes the market leader in Europe-VARTA.”

The transaction is expected to close by the end of the calendar year 2006, subject to negotiation and execution of a definitive acquisition agreement and receipt of European Union antitrust approval.

Johnson Controls is the leading global provider of automotive batteries. The company manufactures and distributes more than 110 million batteries annually, and is the world's largest producer of power-storage devices for passenger vehicles and other applications. Johnson Controls produces and markets many of the world’s leading battery brands including Optima® , VARTA (Europe and Asia), LTH (Mexico) and Heliar (Brazil).

GS Yuasa - brief profile and link to 2006 annual report

2006-10-31T15:12:00.000Z

GS Yuasa Corporation is one of the three main battery market producers emerging as a potential global player alongside Johnson Controls and Exide Technologies. In September this year they release their 2006 annual report. You can download the 2006 results and annual report of GS Yuasa Corporation here.

The company was formed in April 2004 following the merger of Japan Storage Battery Co Ltd and Yuasa Corp and has about 11% of the global market fot starter batteries. The corporation includes 87 subsidiaries and 45 affiliates and in the financial year ended 31 March 2006, generated sales revenues of YEN 239,696 million (approximately USD 2.08 billion)

The group designs and produces storage batteries, power supply systems, lighting equipment and other electric equipment.

GS Yuasa Corp has two headquarters, located in Kyoto and Tokyo, Japan. The holding company employs 315 people. It is listed on the Tokyo and Osaka stock exchanges. The company is organised into ten subsidiaries:

GS Yuasa Manufacturing Ltd – based in Kisshoin, Minami-ku, Japan, GS Yuasa Manufacturing produces automotive batteries. The company employs 707 people.
GS Yuasa Battery Ltd – based in Tokyo, GS Yuasa Battery sells automotive batteries for the replacement market and related auto parts. The company employs 644 people.
GS Yuasa Power Supply Ltd – based in Shiba-koen, Minato-ku, Japan, GS Yuasa Power Supply manufactures and sells industrial batteries, traction batteries, large-size Li-ion batteries, power supply systems and switchgear. The company employs 764 people.
GS Yuasa Lighting Ltd – based in Kisshoin, Minami-ku, Japan, GS Yuasa Lighting manufactures and sells lighting equipment and ultraviolet systems. The company employs 134 people.
GS Yuasa International Ltd – based in Tokyo, GS Yuasa International exports and imports batteries. The company employs 99 people.
GS Yuasa Industry Ltd – based in Kisshoin, Minami-ku, Japan, GS Yuasa Industry manufactures and sells Li-ion batteries as well as specialty equipment and remote monitoring systems, and leases real estate. The company employs 211 people.
Yuasa Development Corp – based in Osaka, Japan, Yuasa Development Corp manufactures and sells Ni-MH batteries. The company employs 21 people.
GS Yuasa Batteries Support Ltd – based in Kisshoin, Minami-ku, Japan, GS Yuasa Batteries Support is an administration unit employing 109 people.
GS Yuasa Accounting Service Ltd – based in Kisshoin, Minami-ku, Japan, GS Yuasa Accounting Service is the accountancy wing of the group, employing four people.

In early 2006, Tata Automotive Components Systems formed a 50/50 joint venture with GS Yuasa International to make automotive batteries for the OE and aftermarket. The new venture, known as Tata AutoComp GY Batteries, is in the process of setting up a production facility on a greenfield site in Pune, India. At peak capacity, the plant will produce some 2m batteries annually.

GS Yuasa operates a manufacturing facility in China, producing more than 2.5m batteries annually for Japanese carmakers. In April 2003, Japan Storage Battery established a new subsidiary, GS Battery (China) Co Ltd, which produces batteries and parts for electric vehicles, in Jiangsu, China. The site marks the company’s fifth plant in China.

The company produces vehicle batteries that conform to DIN standard (for classification of mechanical components), which is rapidly expanding in Europe, China and the Asean region. The company already has operations in Thailand, Indonesia, Pakistan and Vietnam. On the flip side the company has very little presence in Europe, but is the third largest supplier to the aftermarket in the UK, trailing Exide and Varta.

The founder of Japan Storage Battery, Genzo Shimadzu II, was the first person in Japan to produce successfully a lead storage battery, and the company celebrated its centenary in 1995. During the 1960s the company expanded overseas, first in Thailand and Indonesia and then, during the 1970s, into Pakistan, India, Italy and the UK.

Volkswagen takes batteries back to University

2006-10-26T09:44:00.000+01:00

http://www.volkswagen-ir.de/Single_News__E__Nachrichten_f_.562+M59ddec8740b.2.html

Volkswagen AG is helping to establish a special, donated, Chair for Applied Material Sciences for Energy Storage and Energy Conversion, the only professorship of its kind anywhere in Europe. A contract was today handed over to Westfälische Wilhelms-Universität Münster, where the new chair will commence work in 2007 with the joint backing of Degussa AG, Chemetall GmbH and Volkswagen AG.

The purpose of the co-operation is the further development of electric batteries for hybrid-driven automobiles. Research will be centred on lithium-ion batteries, the aim being to eventually replace the nickel-metal-hybrid batteries conventionally used in hybrid vehicles today with the lithium-ion alternative which holds the promise of added power and power density as well as longer life. The new professorship will set out to develop innovative materials to further enhance the performance of lithium-ion batteries and reduce the costs.

A battery of PHd's to come?

NISSAN electric vehicle for the elderly

2006-10-26T09:11:00.000+01:00

First reports are coming out from the 22nd International Battery, Hybrid and Fuel Cell Electric Vehicle Symposium & Exposition (EVS22)in Yokohama, Japan. One interesting vehicle from the Nissan subsidiary Autech was the Micro. With an ever increasing number of elderly driving, the ultra-small car was designed with active interface technology to support drivers with failing motor-ability and response-time that may impair their driving capability. Also on show were lightweight, compact lithium-ion batteries with a claimed power output 1.5 times comparable cylindrical lithium-ion batteries yet offering substantial weitht reductions. More details from Gizmodo

Intelligent Battery Monitoring

2006-10-24T15:29:00.000+01:00

An interesting article on the need for more intelligent battery monitoring. Did you know that the German roadside assistance company, ACAD, has found that battery problems account for 53% of roadside electrical failures? With more intelligent systems, non-essential electronics can be shut-off when there is excessive demand on the charging system. Additionally, as the battery degrades, the vehicle owners can be warned well in advance of failures.

Now, if they could only retro-fit this to the hoards of 10 years old cars that always fail during the first hint of winter, the car recovery firms would might actually be able to get more urgent incidents inside of 2 hours [personal rant over!]

Exide doing well in Indian market

2006-10-23T10:46:00.000+01:00

http://rtotla.blogspot.com/2006/10/strong-results-recharge-exide.html

This financial news blog looking at India includes news that Exide is to expand capacity at all eight of its manufacturing facilities by March next year. The expansion will take Exide's capacity from 4.5 million pieces to 5.5 million pieces.

Apart from expanding the existing production lines at Hosur, Haldia, Shyamnagar and Guindy, Exide will set up an additional facility at Haldia to produce up to a million pieces of traction batteries.

At the end of the release, we can see how Exide is doing in India claiming market shares of 92% of the OEM sector and 70% of the aftermarket. We are also told that the auto sector contributes 60% of Exide’s sales in India.

Push to develop lithium-ion technology charges on

2006-10-20T18:23:00.000+01:00

Interesting to read today’s Automotive Newswire contrasting the scale of development of lithium-ion (Li-ion) battery technology in North America and Europe, Asia.

http://www.autonewswire.net/asp/readstory.asp?sid=5060

While NiMH (nickel metal-hydride) batteries are currently used as the main power source in HEVs, there are still great expectations for Li-ion batteries in some parts of the world, which have a higher density and power output. Because these batteries can be made more compact and lightweight than the former type of battery, hopes remain high that they may be widely used in HEV, FCEV and industrial applications. Time will tell.

Batteries and electrical systems/demands

2006-10-19T12:41:00.000+01:00

Anyone remember all the fuss around five years ago about the next generation of 42-volt electrical systems that would be needed to meet the increasing demands from on-board electronics and telematics etc? Well it went quiet didn't it? I believe the main reason was the costs of development, but also the shift in the auto industry's balance towards emerging markets (which are less demanding in terms of technological demands for their vehicles). Companies have decided to continue with 12-volt electrical systems for now. We've just published a feature on just-auto about the latest battery developments which highlights another possible solution to rising demands - two batteries; one dedicated to the starter function and one for everything else. But dual battery systems are not forecast to sweep the board.

Link to feature: http://www.just-auto.com/article.aspx?id=89359

Exide Technologies

2006-10-19T10:54:00.000+01:00

Exide Technologies is one of the largest manufacturers of lead-acid batteries in the world, posting sales revenues of US$2.8bn in the financial year ended 31 March 2006 (fiscal 2006).

The company designs and produces lead-acid batteries for transportation and industrial applications worldwide.

Transportation batteries include ignition and lighting batteries for cars, trucks, off-road vehicles, agricultural and construction vehicles, motorcycles, recreational vehicles, boats and other applications.

The company’s batteries are sold under the brand names Centra, Champion, Champion Trailblazer, DETAL, Exide, Exide NASCAR Select, Exide Select Orbital and Fulmen Tudor, as well as private labels.

Exide Technologies employs over 14,000 people at its sites in Australia, Belgium, Canada, France, Germany, Holland, Italy, New Zealand, Poland, Portugal, Spain, the UK and the US.

In May 2004, the company emerged from Chapter 11 bankruptcy proceedings.

Exide has several partnered with several tier 1 suppliers on 42V technology including Siemens VDO and Lear Corporation.

How times change

2006-10-17T18:12:00.000+01:00

Hi, I’m Matthew, associate editor for just-auto.com. I specialize in researching and writing about automotive component technologies. Over the past ten years, I’ve run the rule over most car parts, from airbags to wipers. And that includes more forays into the starter battery business than I care to remember.

When I first delved into the European vehicle starter battery market way back in 1998, I found an industry characterized by overcapacity and poor profitability. No change there then.

I also reported an environment of “low-priced Asian imports” and “declining lead prices” exacerbating intense price competition in Europe. Although imports from certain Far Eastern countries still appear in the West, the threat to local producers is minimal. Conversely, lead prices have recently soared causing alarm among many battery producers and prompting them to complete re-think their approach in how to manage it.

Another observed trend in the late 1990s was the frenzied M&A activity on both sides of the Atlantic, not just batteries, of course, but every corner of the components industry. Consequently, some of the big battery company names have disappeared altogether. As Richard pointed out earlier, the net result is the emergence of three global producers, namely Exide Technologies, GS Yuasa, and Johnson Controls. Othe past few years alone, Johnson Controls has acquired a number of battery businesses including the likes of Hoppecke Automotive, Varta Automotive, Grupo IMSA and most recently Delphi’s battery business.

Yet some predictions made back then make me cringe today. Here’s one such gem:

“Given that the electrical requirement of modern cars has risen dramatically since the early 1990s, batteries of a higher amperage are now required. It is likely that by 2003 many new cars will have two batteries—one for the starter motor and one for the other for ancillary electrical equipment.”

OK, I stand guilty as charged me Lord. So twin battery cars are pretty hard to find these days, as an auto executive put me straight last month: “I think the Mercedes-Benz E Class and a couple of other models like the VW Phaeton use dual batteries. They feature a general starter battery and a hotel battery, as we call it. The hotel battery is increasingly becoming an AGM product. So although the dual battery system is in place, I have to say that there is a lot of doubt whether that will ever become mainstream. The main reason for that is the high cost. The reason for the twin battery is effectively to guarantee reliability because these bigger cars are entirely electronic dependent. They just cannot afford a failure. So it is effectively building in some reserves for both starting and performance of electrical functions.”

But some things don’t change. Lead-acid is still, and will continue to be, the most dominant technology used in starter batteries due to cost considerations.

Tracking the aftermarket

2006-10-17T16:50:00.000+01:00

It's good to see Matthew focusing on the aftermarket as well as covering the OEM supply side in this edition. In terms of the growth of the battery aftermarket, manufacturers say it is growing by 1-2% annually. A quick snippet from one of Matthew's interviews with an auto exec reveals: “The official figures say that there is about a 1.5% market growth. I would frankly dispute that because I think the product quality has improved by so much over the past four or five years that it has negated any of that theoretical growth.” Another executive said: “Minimal [aftermarket growth] at the moment. Maybe 1-2%. It is very hard to track. The weather can make a difference but it is a one-time effect. If you have a cold winter then you sell more batteries. Then you have a quiet summer so you sell less. So it is a one-time effect. A car battery is Spain could last about three years whereas in the UK the average battery lasts five-and-a-half years.” Obviously the climate is a major factor in battery life.

Interesting idea for a blog

2006-10-17T16:37:00.000+01:00

As Richard said, I was indeed pinged and invited to view this blog and contribute to it.

By way of brief background, I have a blog on just-auto.com (I'm the site editor) that is pretty freewheeling - I write when I am in the mood (and can fit it in) about what I am doing or what is on my mind. The postings cover a wide range of things connected with my work and a fair amount of opinion is thrown in for good measure. The just-auto blog can also be a useful repository for nuggets of informtion or opinion that can't make it into more formal areas of the site - straight news for example. Readers never know quite what they might be served.

The intriguing thing here is tapping into a subject area in a very focussed way. There's a lot that goes on on the research side at just-auto that many people are unaware of. This blog can, hopefully, lift the lid on some of that and be of use to anyone working in this particular sector of the industry. This is drill-down.

Consolidation - who are the major players?

2006-10-17T14:59:00.000+01:00

The starter battery market is consolidating a bit like the tyre (tire) market did in the 1980s. The concentration in the tyre sector has continued so that today some 60% of the global tyre market is controlled by just three companies: Bridgestone, Goodyear and Michelin.

So how far can consolidation in the starter battery market go ?
It's impossible to predict where consolidation will end. Many executives within the sector believe that consolidation amongst the major players has finished. Future concentration will occur with smaller companies forming alliances or being taken over by the major players. Eastern Europe is a hot-bed for potential acquisitions and alliances with several mid-size players in each market.

So who are the major players?
Three valve-regulated lead-acid battery manufacturers – Exide Technologies, GS Yuasa and Johnson Controls – have emerged as potential global players.

Others, such as Banner, Fiamm, Shin-Kobe Electric Machinery, East Penn Manufacturing and Amara Raja Batteries, have local strengths.

But what about new entrants?
The main barrier to entry is the relatively high cost of transportation. Given escalating costs of transportation, coupled with low market growth rates (typically 1-2%) most view the possibility of a new entrant as unlikely.

Next up: brief profiles of each of the above companies.

Just chatting with Mike

2006-10-17T14:53:00.000+01:00

Just showed Mike the blog. He thought it was quite interesting - said that "he'd never seen a blog based around a single commercial product before." So maybe this is something new?

But this blog is more than that...

I want to invite anyone in the sector: engineers, managers, planners, librarians to share their knowledge too.

I'm going to be asking several people within just-auto to see if they too will add to the blog. First up will be my co-founder Mike Gove and the Managing Editor of just-auto, Dave Leggett. Some of you may already know Dave from his own automotive business blog.

Next post - I'll aim to list some of the major players in the industry with brief overviews.

THE battery report

2006-10-17T12:31:00.000+01:00

OK, so I've read the report (all sixty-odd pages) and it's quite interesting. This report is the third edition - all have been written by Matthew Beecham - but I'll tell you more about him later.

Anyway, over the next few posts I'll cover some of the report's findings and profile each of the major players.

If you want a sneak preview of the report, you can download a sample of the global market for automotive batteries free of charge. You will need to register, but if you find that too off-putting, and can't spare the 60 seconds it takes, then drop me an email to richard@builderz.co.uk and I'll email you a copy.

As it's the third edition, I can also let you have access to earlier editions (but I'll need you to leave your Rolex behind for collateral ;-))

Welcome to automotive batteries

2006-10-17T12:07:00.000+01:00

OK so what's the point of this blog (I ask myself)?

Well, you see back in 1998 I had an idea with my good friend, Mike Gove, about a web site called just-auto.com. We were both working for a software business called JBA who sold ERP (Enterprise Resource Planning) software to the auto sector.

Back in 1998 our bosses just let us get on with "that web thing" and so we were paid to play with all the latest gadgets, technologies and marketing ideas. At the time we felt the company should reduce its multi-million pound marketing budget and start looking at promoting themselves on the web (with a bit of SEO thrown in).

I'm pleased to say that our thoughts back then were right on the money and our early mantra "content is king" served us well. Based on our advice, JBA (with some help from hardware partner IBM) stumped up a lump of cash and "just-auto" a site to deliver news and research to the automotive community was launched.

I'd like to say that in all of this Mike was the gadget-geek and I was the business brains - but the reality is we both overlapped massively (much to the confusion of everyone else).

Anyway, eight years later on and we're still working together running a small (but perfectly formed, and profitable) business called Aroq - a business-to-business news publisher. The beauty is we still have just-auto and it is now one of the largest auto sites on the web. We've expanded our brief somewhat and now also produce market research reports - one being "The global market for automotive starter batteries".

So, a blog that's a blatant plug for a report?

In a way yes, but remember, our mantra "content is king". Rather than just say "buy this report now", I've set out to use all of just-auto's resources, plus the rest of the web and pull together in a single place, anything interesting about the battery sector.

I'm not going to cover maintenance issues or where to buy a battery. This blog is about the rise of a handful of players as consolidation continues apace, about the latest technological developments and about what the future may look like.

If you work within one of the battery manufacturers then I've an open invite for you to join in. Same for comments. Remember though, this is not about shameless promotion . This blog is here to discuss the business and sector issues and share with you some news and research on the sector.

Happy reading, and welcome.