MILWAUKEE -- Johnson Controls Inc. said it plans to invest $245 million through 2020 to double North American production of absorbent glass mat (AGM) batteries for vehicles with stop-start systems. Stop-start systems improve fuel economy as much 5 percent by stopping the engine when the vehicle halts at a traffic signal. Although it’s more expensive than a conventional lead acid battery, an AGM battery can better withstand the strain of frequent engine restarts. The company, in a statement today, did not indicate whether it will expand an existing facility or build a new one in North America. To serve this market, the company currently produces AGM batteries at a factory in Toledo, Ohio. Last August, Johnson Controls announced plans to expand the Toledo facility, bringing its total investment there to $130 million since production began in 2012. By 2020, as many as half the vehicles produced in North America will be equipped with stop-start systems, according to Johnson Controls. The company also produces AGM batteries in Europe, where stop-start systems are popular. The company produces AGM batteries in two German plants -- Hannover and Zwickau -- to handle demand in Europe, where 85 percent of all vehicles produced in 2020 are expected to have stop-start systems. Johnson Controls also is ramping up production in China, where it plans to build a $200 million AGM battery plant in Binzhou. Construction will begin next year. The company said today that it expects to spend $780 million from 2015 to 2020 to expand global production of AGM batteries.
Johnson Controls (JCI) announced yesterday that it will invest $245m to 2020 in a bid to double its production capacity of electric vehicle (EV) batteries in North America and build a new battery factory in China. The investment is part of the company’s plan for an EV revolution by 2025, which includes building two new factories in China and expanding existing facilities at both facilities. The company believes that rising consumer demand and environmental regulations will see up to 50% of cars built in North American featuring stop-start systems by 2020.