Professional Documents
Culture Documents
Yoshito Tsunoda
Senior Vice President and Executive Officer
President & CEO,
Battery Systems Company
Hitachi, Ltd.
Hitachi’s Battery Business
Combining Hitachi
Hitachi’s
s strengths
with a focus on industrial applications
Contents
1. Market Environment
2. Activities at the Battery Systems Company
3. Business Strategies
1-1. Market Environments
- High expectations for batteries in the areas of green mobility and new energy
- Batteries are key devices in the formation of Smart Communities and
other new industrial fields
Developing electric vehicles:
Worldwide CO2 Emissions 66 trillion yen (Green Mobility)
(billion tons per year)
New energy equalization
allowance: 11 trillion yen
62 Consumer
appliances
15 Automobiles
Industry 5 40
Capital investment 92
Power 6
trillion yen
28
Ships,
aircrafts,
Scenario for reducing 14 etc. Railway
CO2 emissions by half 20 6
(IEA Blue Map)
billion yen
5,000 Industry
4,500
, Automobiles
4,000 Consumer
3,500
3 000
3,000
2,500
2,000
1,500
1,000
500
0
2008 2010 2012 2014 2016 2018 2020 (FY)
Source: Hitachi Survey
© Hitachi, Ltd. 2010. All rights reserved. 3
Hitachi’s Battery Business
Combining Hitachi’s strengths
with a focus on industrial applications
Contents
1. Market Environment
2. Activities at the Battery Systems Company
3. Business Strategies
2-1. Targets of Hitachi’s Battery Business
Strengthen
St th the
th expansion
i off battery
b tt business
b i ffrom devices
d i tto b
battery
tt solutions
l ti for
f
power sources, with a focus on industrial applications,
and create new business based on collaborations throughout the Hitachi Group
Materials
Advanced
Battery Systems Company
Materials
Manufacturing
facilities R&D (Innovation Engine)
© Hitachi, Ltd. 2010. All rights reserved. 5
2-2. Platform Technologies that Support Hitachi’s Battery Business
The Battery Systems Company combines:
(1) “Monozukuri” capabilities in consumer and automotive batteries;
(2) Advanced material technologies from Research Divisions; and
(3) System applications based on Hitachi Group collaborations
Automotive Production Lines Hitachi Group’s Materials Products Control technologies and
(Hitachi Vehicle Energy) products using batteries
Advanced
Ad d materials
t i l System
S t
Monozukuri Capabilities technologies Applications
*Results of research contracted by NEDO
© Hitachi, Ltd. 2010. All rights reserved. 6
2-3. “Monozukuri” Capabilities
-Hitachi’s
Hit hi’ “Monozukuri”
“M k i” pursues outstanding
t t di safety,
f t power, and d capacity
it
-Electrode manufacturing is at the core of batteries, and Hitachi’s battery manufacturing achieves
high reliability
1965: Production of Maxell's magnetic tape begins 1961: Production of Maxell's battery (cell) begins
“Maximum Capacity Dry Cell”
© Hitachi, Ltd. 2010. All rights reserved. 7
2-4. Advanced Materials Technologies
Develop
D l technologies
t h l i in i a comprehensive
h i process, from
f material-
t i l
synthesis to battery prototype evaluations
Challenges
g towards advances materials technologies
g
Electrochemical
Material-synthesis evaluation Battery evaluation
Platform for integrated analysis of electrode surface response and internal degradation
of space
Capacity
Cathode Anode
(%)
S
Spinel materials
Manganese Life
60
- Test of battery life equivalent to 8 yrs. Crystallized
- Projected battery life of 10 yrs. or more Ceramic
coating carbon
Amorphous silicon oxide
[Research contracted by NEDO] Cycles 1/2
© Hitachi, Ltd. 2010. All rights reserved. 8
2-5. System Applications
- Control
C l technologies
h l i to maximize
i i battery
b cellll performance
f
- The Hitachi Group’s product capabilities enable comprehensive
Information and I d t i l machinery
Industrial hi P
Power systems
t
Telecommunications
UPS: Uninterruptible Power Supply Railway / Construction machinery Wind power / Solar power / Smart grids
Amorphous
Metal core
* HiGT: High Conductivity IGBT, IGBT: Insulated Gate Bipolar Transistor © Hitachi, Ltd. 2010. All rights reserved. 9
2-6. Configuration of the Battery Systems Company
B tt
Battery S
Systems
t C
Company
1. Business Management Division:
Overall supervision of operations; Creation of large-scale industrial solutions business
2. Hitachi Maxell:
Consumer battery and small- to medium-sized industrial lithium-ion battery business
3. Hitachi Vehicle Energy:
Automotive lithium-ion battery business
Revenues
Electrode materials
Separators, etc. Unified Procurement
Industrial applications
Consumer Automotive
applications applications Small to medium- Large packs Battery solution
sized packs Railway / Stationary New energy /
Power tools / electric scooters equipment, etc. Smart communities
C A (Korea)
Co. ● ● - - -
Co. B (Japan) ● ● ○ ○ -
Co. C (U.S.) - ● ● ○ -
Hitachi ○
● ● ● ● System collaboration
proposals
● Currently rolling out business ○ Planning on rolling out Business in the future
© Hitachi, Ltd. 2010. All rights reserved. 12
Hitachi’s Battery Business
Combining Hitachi’s strengths
with a focus on industrial applications
Contents
1. Market Environment
2. Activities at the Battery Systems Company
3. Business Strategies
Product lineup
yp rechargeable
Coin-type g High capacity batteries by Expanding
p g applications
pp
batteries using Si anode (power tools, etc.) with
About 20mm in diameter; high-power type, and Thin, high-capacity batteries
capable of high rate developing a high Sample size variation
discharge at 140mA capacity type
Mobile phones,
phones smart Power tools,
Medical sensor nets, Electric
El i scooters, UPS
UPS,
phones, digital cameras, gardening tools,
multi-function watches, floor cleaners, portable
portable game devices, pedelecs, wireless radios,
Bluetooth modules, etc. power supply, etc.
electronic dictionaries, etc. etc.
Total
T t l investment:
i t t 2 billion
billi yen
Production of laminated batteries to begin in fiscal 2011
■Selected as recipient of METI subsidy for the program
■Assembly facilities installed in the Toyama Works and electrode production facilities
installed at the Kyoto Works
Product lineup
Hybrid commercial vehicles (buses, trucks), hybrid electric vehicles (HEV), Plug-in hybrid electric vehicles
rolling stocks, cargo-handling machinery systems, stationary energy (PHEVs), stationary industrial
storage systems for regenerative power absorption, etc. applications, etc.
- Seek out new applications, mainly in the industrial application (e,g., Smart communities)
- Target for orders in related fields: 1 billion yen (FY2012); 10 billion yen (FY2014)
Product lineup
Long-life
g lead acid Prismatic lithium
lithium-ion
ion Cylindrical lithium
lithium-ion
ion Lithium-ion
Lithium ion
rechargeable batteries batteries capacitors
batteries
For wind power generators; 200Ah high-capacity Industrial cycle applications Greater output than EDLC *2,
expected life: 17 yrs. (LL-W batteries*1 based on EV batteries and more than 3x the energy
type); For storage: 10-15 yrs. (Float life: 10 yrs.) (50Ah, 90Ah) density
*1 *2
Joint development with NTT Facilities, Inc. Electric Double Layer Capacitor © Hitachi, Ltd. 2010. All rights reserved. 18
3-6. Development of Innovative Battery Technologies
-Started
Started up Group-wide
Group wide development project targeting large-scale
large scale industrial applications
(May 2010)
- Developing “standard cells” and “battery control platforms” 3 year plan; 5 billion yen
T
Targets
t for
f industrial
i d t i l use lithium-ion
lithi i batteries
b tt i
[W/kg] 4,000
er
HEV
plosive powe
3,000
Lithium-ion Batteries Large capacity
Industrial batteries
Output density = Exp
Capacitors PHEV
2,000 PHEV
Power
tools
Product Strategies
- Combine the comprehensive strengths of the Hitachi Group, and expand into
the Battery Solution Business
Development Strategies
- Continually strengthen innovative battery technologies,
i collaboration
in ll b ti with ith R&D Group
G
Cost Strategies
- Increase investment efficiency by promoting overall optimization
(unification of production and procurement activities)
- Increase cost competitiveness through the Group-wide development project
Finance/Alliance Strategies
- Secure global intellectual property rights for innovative battery technologies
- Actively build partnerships (alliances) with outside companies
Certain statements found in this document may constitute “forward-looking statements” as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking
statements” reflect management’s current views with respect to certain future events and financial performance and include any statement that does not directly relate to any historical or
current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends may identify
“forward-looking statements.” Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ
materially from those projected or implied in the “forward-looking statements” and from historical trends. Certain “forward-looking statements” are based upon current assumptions of future
events which may not prove to be accurate. Undue reliance should not be placed on “forward-looking statements,” as such statements speak only as of the date of this document.
Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking statement” and from historical trends include, but are not limited to:
- economic conditions, including consumer spending and plant and equipment investments in Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, as well as levels of demand in the major
industrial sectors which Hitachi serves, including, without limitation, the information, electronics, automotive, construction and financial sectors;
- exchange rate fluctuations for the yen and other currencies in which Hitachi makes significant sales or in which Hitachi’s assets and liabilities are denominated, particularly against the U.S. dollar and the euro;
- uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term financing;
- uncertainty as to general market price levels for equity securities in Japan, declines in which may require Hitachi to write down equity securities that it holds;
- the potential for significant losses on Hitachi’s investments in equity method affiliates;
- increased commoditization of information technology products and digital media-related
media related products and intensifying price competition for such products
products, particularly in the Components & Devices and the Digital Media &
Consumer Products segments;
- uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new technology on a timely and cost-effective basis and to achieve market acceptance for such products;
- rapid technological innovation;
- the possibility of cost fluctuations during the lifetime of or cancellation of long-term contracts, for which Hitachi uses the percentage-of-completion method to recognize revenue from sales;
- fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel, aluminum and synthetic resins;
- fluctuations in product demand and industry capacity;
- uncertainty
t i t as to
t Hitachi’s
Hit hi’ ability
bilit to
t implement
i l t measures to
t reduce
d the
th potential
t ti l negative
ti impact
i t off fluctuations
fl t ti in
i product
d t demand,
d d exchange
h rates
t and/or
d/ price
i off raw materials;
t i l
- uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation Business;
- uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness and other cost reduction
measures;
- general socio-economic and political conditions and the regulatory and trade environment of Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, including, without limitation, direct or
Indirect restrictions by other nations on imports, or differences in commercial and business customs including, without limitation, contract terms and conditions and labor relations;
- uncertainty as to the success of alliances upon which Hitachi depends, some of which Hitachi may not control, with other corporations in the design and development of certain key products;
- uncertainty
t i t as to
t Hitachi’s
Hit hi’ access to,
t or ability
bilit to
t protect,
t t certain
t i intellectual
i t ll t l property
t rights,
i ht particularly
ti l l those
th related
l t d to
t electronics
l t i and dd
data
t processing
i ttechnologies;
h l i
- uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its subsidiaries or its equity method affiliates have become or may become parties;
- the possibility of incurring expenses resulting from any defects in products or services of Hitachi;
- the possibility of disruption of Hitachi’s operations in Japan by earthquakes or other natural disasters;
- uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as Hitachi’s ability to protect its confidential information and that of its customers;
- uncertainty as to the accuracy of key assumptions Hitachi uses to valuate its significant employee benefit related costs; and
- uncertaintyy as to Hitachi’s abilityy to attract and retain skilled personnel.
p
The factors listed above are not all-inclusive and are in addition to other factors contained in Hitachi’s periodic filings with the U.S. Securities and Exchange Commission and in other
materials published by Hitachi.