The Future of Batteries at Johnson Controls, Inc.

The Future of Batteries at Johnson Controls, Inc.

ADM 519

December 4, 2004

The Future of Batteries at Johnson Controls, Inc.

Introduction

Although there have been many improvements to the materials and processes of lead-acid batteries, the way the battery works and the electrochemistry that takes place has not changed since Gaston Platte, a French Scientist, immersed lead plates in diluted sulfuric acid in 1859 and proved current would flow between the plates repeatedly (Lead-acid, 2004). As automotive technology and needs change, the battery must change with it. The issues that are driving this change are “consumer pull, government push, and manufacturer competitive advantage” (Dhingra, 2004, p. 6). Most consumers want a change due to the increased concern about the environment. The government is pushing this change with increased emission controls and safety requirements (Dhingra, 2004). Finally, manufacturers who can develop and deliver hybrid or electric vehicles will have a huge advantage in the market (Dhingra, 2004).

This change to totally electric vehicles (EVs) will not take place overnight and could be many years down the road. The changes will more than likely transition from our current automobile concept of internal combustion engine (ICE) powered vehicles to some type of hybrid electric vehicle (HEV) before going totally to EVs.

There are some vehicles on the market today that are using an ICE stop-start technology. In this type of automobile, the vehicles use the ICE for “propulsion but shut down the engine when stopped” (Dhingra, 2004, p. 6). This type of system is being developed due to the increased pressures automobile manufacturers are being placed under to reduce emissions and increase fuel economy. One of the vehicles that use this type of technology is the Toyota Vitz with a lithium battery. This market is expected to grow significantly over the next ten years especially in the four-cylinder ICE segment (Dhingra, 2004).

The next step in the transition to an EV is a mild hybrid vehicle. This system uses a 42 volt lead-acid, absorbent, glass-matte (AGM) battery system. This type of vehicle uses the same start-stop concept that the smaller four-cylinder engines use but the vehicles and ICEs are much larger. One vehicle that uses this technology currently in production is the Toyota Crown (Dhingra, 2004). Later this year, General Motors will launch their Silverado and Sierra models with this available option (Dhingra, 2004). This larger system is also expected to see growth over the next 10 years.

The final transition before a totally EV is the full hybrid vehicle. This vehicle uses a very small ICE in combination with an electric motor for propulsion. The electric motor gets its power from either nickel-metal-hydride (NiMH) or lithium ion (LiO) battery packs. The vehicles on the market today that use NiMH technology are the Honda Civic Hybrid, the Honda Insight, and the Toyota Prius (Dhingra, 2004). The Nissan Tino, which uses LiO, is in limited production. Through the end of the year and in to next year, Toyota and Ford plan to introduce their full HEVs as well. When 2007 comes to a close, “consumers will also be able to choose from full-hybrid vehicles such as GM’s GMT900 and the Saturn Vue, both with NiMH; the Daimler Chrysler MB R400 with NiMH; the 2006 Nissan Altima; and Toyota’s Camry, Highlander, Sienna and Land Cruiser, all with NiMH (Dhingra, 2004, p. 8).

Lead-acid batteries will “continue in to the future as the foundation for energy-storage devices in the automotive market since ICEs with stop-start or mild-hybrid vehicles will have dominant volume base” (Dhingra, 2004, p. 8). Given the overwhelming trend, however, of the industry toward HEVs, Johnson Controls must devise a plan for breaking in to the NiMH or LiO market in order to continue their strong presence with automakers. Will JCI buy the technology or develop it themselves. This is the dilemma, the 120-year old company faces.

History

Founded in 1885 in Milwaukee Wisconsin, by an electrochemistry professor named Warren Seymour