Sanyo Sees Hybrids Gaining Market Share, Steps Up Battery Production Plans
By John O'Dell May 15, 2009
Japanese electronics giant Sanyo Electric Co. says it sees batteries -- for hybrids and possibly electric vehicles -- as a key to future profits and despite a $978.5 million loss for its just-completed 2008 fiscal year will be spending billions (of yen) on new battery plants and plant expansions this year and next.
In a conference with analysts this week, the company said that it has revised its long-term plan to include spending 30 billion yen ($314 million) by early 2012 to increase production of lithium-ion and nickel-metal hydride batteries for hybrids.
Sanyo said it will open new lithium-ion battery factories this year and next at its complexes in Japan's Hyogo and Tokushima prefectures and is aiming at producing the advanced batteries for as many as 120,000 new vehicles a year.
Lithium-ion batteries, which are made with a number of different chemistries, are lighter and store more energy than the nickel-metal hydride batteries used in hybrids today. They are considered a must for next-generation plug-in hybrids and for all-electric EVs as they begin coming on line.
In addition to the lithium-ion battery factories, Sanyo said it also will invest in an expansion of its Sumoto nickel-metal hydride battery plant in Hyogo, to more that double annual production by the end of this year to 30 million battery cells -- enough for 150,000 conventional hybrids.
Sanyo supplies both Ford Motor Co. and Honda Motor Co. with nickel-metal hydride batteries for their present hybrid models and previously announced a joint venture with Volkswagen to produce advanced lithium-ion batteries for VW and Audi hybrids.
The electronics company said last year that it envisions a huge increase in hybrid production by 2015 -- including rechargeable, or plug-in, models -- and wants to capture a big chunk of the market for its batteries.
To that end, Sanyo has budgeted about 80 billion yen ($837 million at today's exchange rate) on hybrid battery production improvements through 2015.
Sanyo sees hybrid production increasing from around 600,000 last year to 4.5 million by 2015 and plans to be able to produce enough batteries to supply 40 percent of the market.
Meantime, the U.S. is just beginning to promote domestic battery manufacturing.
Without a concerted national battery development effort, and a federal energy policy that points the way, we can look for Japan, and China, to become the new Saudi Arabias as global oil production flattens and begins shrinking and electricity -- which needs batteries for storage -- becomes an increasingly important fuel for our personal vehicles.
John O'Dell, Senior Editor
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