Johnson Controls and SAIC Sign Battery Agreement

Johnson Controls recently announced that it has signed a new long-term automotive battery supply agreement with Shanghai Automotive Group Corporation. According to this agreement, Johnson Controls Energy Power will provide adsorption-type glass fiber separator batteries (abbreviated as AGM batteries) for the start-stop type of SAIC Motor’s own brand. The company did not disclose details about the contract.

The working principle of the car start-stop system is that when the car is temporarily stopped, the engine is automatically shut off. When the driver releases the brake or depresses the clutch, the battery restarts the engine. Compared to conventional fuel engines, the start-stop system can save consumers 5 to 8 percent of fuel consumption, but they need to configure car batteries with better performance.

Johnson Controls said that AGM battery charge and discharge resistance is 3 times that of ordinary batteries, electricity is more powerful and longer life, able to overcome the challenges of various harsh environments, to meet the start and stop the car's various requirements for the battery.

Johnson Controls plans to invest $520 million in global investment to increase AGM battery capacity, of which $100 million will be invested in China to increase its AGM battery capacity to 2 million in this market.

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