Manufacturing News

Johnson Controls to build 1.3 billion-yuan battery plant for stop-start systems

Johnson Controls Inc. will construct a 1.3 billion yuan ($200 million) battery plant in Jiyuan in north China’s Henan province to supply automakers in China.

The factory will produce absorbent glass mat batteries with output slated to start in 2018.

The AGM batteries will be used in stop-start systems which can enable automakers to improve light-vehicle fuel efficiency by up to 5 percent, said Johnson Controls.

The plant in Jiyuan will become Johnson Controls’ third battery production site in China, after factories in Changxing in east China’s Zhejiang province and the southwest China municipality of Chongqing.

Johnson controls also plans to build a similar battery factory in the northeast China city of Shenyang, according to a statement the company released in 2015.

Demand for stop-start systems from automakers has been on the rise as Beijing requires automakers to cut fleet-wide fuel consumption per fleet to 5 liters per 100 kilometers (47 mpg) by 2020 from 6.9 liters (34 mpg) in 2015.

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