Johnson Controls and Saft Part Ways on Battery Production

It's not often these days that we see two companies that have joined forces to develop battery systems part ways. With the thriving industry of electric and hybrid cars in its early stages and judging by the great numbers provided by analysts and research companies, most of the big names in the supplier industry are doing their best to find the most suitable partners to pursue their goals.

Not the same can be said about Johnson Controls and Saft, who were brought together in 2006 by the need to create better lithium-ion batteries. Johnson Controls, one of the biggest suppliers on the international markets, announced on Thursday that it has decided to end the joint venture with Saft, citing “a fundamental disagreement about the future direction and appropriate scope of the joint venture.” The supplier added that the dissolution of the joint venture with not affect the other ongoing contracts it has with Saft.

More precisely, Johnson Controls bets on the evolution of the industry and the emergence of new markets to justify searching for multiple alternative technologies (a euphemism for more partners), something that probably doesn't sit right with Saft.

"The industry is evolving rapidly and the investments needed to achieve market leadership require us to do more than the joint venture has done or can do," said Alex Molinaroli, Johnson Controls Power Solutions president. "This action reaffirms our strategic commitment to the advanced battery industry."

"We are confident we will continue to provide our customers with quality products that meet and exceed their needs. Our commitment to our customers and this market is not changed. All of this activity reflects our long-term commitment to be a leader in the advanced battery space."