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Johnson Controls and Saft reach agreement to end Johnson Controls-Saft Li-ion automotive battery joint venture

Johnson Controls, Inc., and Saft have reached an agreement to end their joint venture, Johnson Controls-Saft, which was formed in 2006 to develop and manufacture Li-ion vehicle batteries. The parties’ agreement to end their relationship will also terminate all legal proceedings between the companies. (Earlier post.)

Under the terms of the agreement, Johnson Controls will acquire Saft’s share of the company for $145 million in cash. The agreement includes an up-front royalty payment by Johnson Controls to Saft in return for an expanded license to Johnson Controls to use certain Saft Li-ion technology in all markets. The transaction, which is subject to regulatory clearances, could close as early as 30 Sept. 2011.

We appreciate the relationship we have had with Saft and are pleased that we have been able to resolve this matter in a mutually beneficial way.

—Alex Molinaroli, president, Johnson Controls Power Solutions

I am very pleased to have reached a rapid positive resolution to this dispute which is in the interests of our customers, staff and shareholders. It also eliminates the cash and P&L burden of the joint venture on Saft. Saft management is now fully concentrated on pursuing the exciting opportunities for our Li-ion technologies in all the markets we choose.

—John Searle, Chairman of Saft’s Management board

All assets of the joint venture will be retained by Johnson Controls, with the exception of a facility in Nersac, France, which will be transferred to Saft at the end of 2012.

Upon completion of the transaction, Johnson Controls will operate the company and will fulfill the company’s existing contractual agreements and work with customers and suppliers accordingly.

Comments

HarveyD

Will both J-C and Saft produce lithium batteries in the near future?

French Engineer

As I read it in the business Press, LiIon Batteries for sure.
But for cars? Johnson Controls yes, they got the JV remnants, but Saft not so sure.

The divorce was caused by both seeing a bigger market in stationary applications. Saft was the first there on his own, and did not want to allow the JV to go there. But Johnson wanted to go where the money appear to be. Now they can.

Reel$$

Stationary apps for storage systems used in power conditioning for wind and solar is one growth market. Another is storage used for backup in micro-CHP systems. And further in large apps like those Altairnano is pursuing with success.

Edward Son

them to “explain” variables that have no material relationship to US ethanol production: the US price of natural gas and unemployment rates in the US and the European Union. Relationship Tips by Morel1

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