Update on Saft-Johnson Controls Joint Venture

In The Energy Blogs efforts to keep up with all developmente regarding lithium batteries, the following was found in the Saft Groupe SA Reports Full Year 2006 Earnings report.

John Searle, Chairman of the Management Board, commented: "I am particularly encouraged by the progress made by JC-S, our hybrid vehicle joint venture, during its first year, which leaves this business well-positioned for future success."

In January 2006, Johnson Controls and Saft created Johnson Controls - Saft Advanced Power Solutions LLC ("JC-S"), a joint venture with the objective of becoming the leading Western supplier of batteries for Hybrid and Electric vehicles ("HEV's"). Saft's proven expertise in high-performance, advanced battery technologies complements the strengths of Johnson Controls in high-volume production capabilities and outstanding knowledge of the global car industry. ...

The joint venture has already announced the following successes since its creation:

• Award of a contract from the USABC consortium to accelerate development of li-ion batteries for HEV's
• Signature of a letter of intent with a major car manufacturer for 2 li-ion HEV programmes. As a result, JC-S is now building a manufacturing plant for li-ion batteries at Saft's RBS Nersac site
• Award of a contract by General Motors to develop li-ion batteries for a future plug-in hybrid version of the Saturn Vue SUV

In the light of these successes and other opportunities, the partners have agreed to increase the joint venture's budgeted capital expenditure and operating costs.