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Johnson Controls to spend $245 million on N. America battery plants


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June 13, 2016 by Canadian Plastics

Auto parts supplier Johnson Controls Inc. will invest US$245 million to build automotive batteries to handle increasing demand for electrical devices in cars and trucks.

In a statement, Milwaukee, Wis.-based Johnson Controls said the investment largely will be in the U.S. and will add jobs at multiple locations. But the company wouldn’t reveal the expansion sites or how many jobs it will create because it’s still working with local officials on the locations.

The company also said it will invest over $780 million globally to increase manufacturing capacity for its Absorbent Glass Mat batteries.

Johnson Controls says cars now have 50 computers and 150 electrified devices such as navigation systems, heated seats and power windows and doors, increasing the need for electric power.

The company predicted the market for stop-start systems will jump from 25 million this year to 65 million by 2020 in North America, China and Europe as automakers try to comply with government fuel economy targets.

Last year, Johnson Controls made 146 million batteries for the global market. It recently announced a joint venture in China to build its fourth automotive battery plant.