Johnson Controls cited rising start-stop vehicle demand for expanding production capacity of its Absorbent Glass Mat (AGM) batteries in China.
The US firm is increasing the capacity of its AGM production lines in its Changxing Plant, Zhejiang province facility to more than three million units a year.
It means the total annual capacity of the plant will be around 10 million batteries, making it Johnson Controls’ largest battery manufacturing facility in China.
The Changxing expansion project is expected to be finish next year.
Kenneth Yeng, vice president and general manager at Johnson Controls Power Solutions China, said he believes that by 2020, around 50%, or 15 million new vehicles annually, will be fitted with start-stop capability in China alone.
The company also predicts the global market will surge from 25 million to 65 million vehicles in North America, Europe and China between 2016 and 2020.
Start-stop technology is thought to be a key solution to increasing fuel economy and meeting emission targets set by the governments across the globe.
The expansion comes as Johnson Controls earmarked $780 million to grow global production capacity for start-stop vehicle batteries in the next five years‑ as BBB reported back in June .
“We see growing market demand for AGM batteries, as start-stop vehicles are getting more and more popular in China and around the world.” said Yeng.
“We are adding the capacity to meet the market momentum while following our global manufacturing standards to ensure outstanding performance and quality.”