Lithium Energy Japan Tries to Halve EV Battery’s Price in 2012

Lithium Energy Japan, Kyoto headed joint venture to manufacture large size lithium ion batteries, aims to halve the selling price of lithium ion battery for electric vehicle (EV) when Ritto plant in Shiga, Japan starts commercial shipment in April 2012. The JV’s production capacity is expected to increase by 30 times in next 2 years to supply lithium ion batteries for approximately 70,000 units of EV. The JV’s annual revenue is estimated to reach 40 billion yen 2 years later.

The JV was established in December 2007 by GS Yuasa International, Mitsubishi Corporation and Mitsubishi Motors Corporation. The JV started operation of the first productive line in Kusatsu plant, Shiga for 2,300 units of EV per year in June 2009. This productive line supplies lithium ion battery “LEV50” for Mitsubishi Motors’ EV “i-MiEV.”

In June 2010, Kusatsu plant’s second productive line is scheduled to start commercial shipment for 4,500 units of EV per year. The capital expenditure is 4.2 billion yen. GS Yuasa’s Kyoto plant will start commercial shipment for 11,000 units of EV per year in December 2010 with 6.7 billion yen capex. Ritto plant is planned to start the shipment for 50,000 units of EV per year in April 2012 with 37.5 billion yen capex.

LEV50’s unit power cost is more than 100 yen per kilowatt hour. Meanwhile, a coming competitor in South Korea is expected to produce lithium ion battery with unit power cost at 35-38 yen per kilowatt hour. Lithium Energy Japan’s representative officer said at a press conference in Kyoto on Wednesday the JV tries to halve the unit power cost by volume efficiency of Ritto plant.