According to Reuters, Johnson Controls just announced that it will increase its Chinese production of car starter batteries to 30 million per year by 2015. To fuel this increased output, Johnson Controls expects to build 3 or 4 more plants.
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Alex Molinaroli, president of Johnson Controls’ power solutions unit, says that industry shakeout will likely occur as supply for hybrid/electric car batteries exceeds demand. He also said that cost of the batteries is a major obstacle to more widespread adoption, and one that Johnson Controls plans to address:
“Our own plans talk about 50 percent cost reductions by 2015,” he said. “We have much more aggressive targets by the end of 2020.”