western lithium WLC_VC largest domestic lithium
LONDON - Volkswagen gained momentum Wednesday in the global auto race as they battle to develop green, mass-produced technologies.
The German carmaker teamed up with Japanese electronics maker Sanyo Electric to manufacture lithium-ion batteries, signaling a move to embrace a wider trend in the auto industry.
Sanyo said it will invest 488 million euros ($769 million) to expand production by 2015 of such batteries, aiming to start mass-producing them in a Japan plant by next year, making 15,000 to 20,000 batteries a year.
The deal with Volkswagen follows one in January 2006, when the two companies agreed to work together in nickel metal hydride batteries, now used in most gas-electric hybrids like Toyota's Prius. (See: “ Honda Lays Out Hybrid Fleet To Challenge Prius”)
Lithium-ion batteries, widely used in laptops and other gadgets, have more energy capacity and can be smaller than nickel metal hydride batteries, promising potential to power future ecological cars.
Analysts saw the announcement as key stepping stone for a wider trend amongst automakers, including Renault and General Motors, to develop environmentally friendly technologies as the demand for green products increases and the price of oil rises.
Tim Schuldt, an analyst with Equinet in London, told Forbes.com: “The car-maker industry faces key challenges in the long run, there is a huge transformation and the winning companies will be those who can adapt to change.
“Customers are still cost-driven and the new technology must be at an attractive price,” he added.
In the short term, Schuldt said, auto-manufacturers will need to come up with efficient technologies to lower C02 emissions and gasoline consumption.
Shares in Volkswagen closed up 0.7%, or 1.20 euros, to 182.44 euros, in trading in Frankfurt.
Sanyo shares were unchanged at 255 yen ($2.5). The announcement came after trading ended. |
