Honeywell Gets Grant for Domestic Production of Key Lithium Battery Element

Honeywell Gets Grant for Domestic Production of Key Lithium Battery Element

Honeywell, the New Jersey-based conglomerate whose businesses include aerospace, home-security and car-engine products, received a $27.3 million grant from the U.S. Energy Dept. to develop domestic production of a key element used in lithium-ion batteries, whose demand is expect to surge as automakers produce more plug-in hybrids and battery-electric cars.

The grant will help the company become the first U.S. supplier of high-purity lithium hexafluorophosphate (LiPF6), a conductive salt used in rechargeable lithium-ion batteries. The funding is part of that authorized in the 2009 American Recovery and Reinvestment Act for the development of alternative-fuel vehicles.

Lithium-ion battery sales are expected to surge as cars such as the Chevrolet Volt extended-range plug-in electric vehicle and the Nissan Leaf battery electric car are introduced to the market later this year and as Toyota debuts a plug-in version of its Prius as early as next year.

Additionally, more automakers are expected to switch to lithium-ion from the nickel-metal hydride batteries that are currently being used in conventional hybrids.

Global lithium-ion battery sales will increase more than 40 percent to $10.1 billion in 2015 from $7.2 billion this year, Honeywell said, citing research firm Avicenne.

John O'Dell:  is an AutoObserver Senior Editor. Follow @AutoObserver on Twitter.