Hitachi will build battery factory in the U.S.

Hitachi Chemical (one of the major suppliers of materials for Li-ion batteries in Asian market) will build in the US a new plant by 2018, spending about 83 million dollars.

6/25/15 5:00 am chumakdenis 1

Hitachi Chemical, which has been producing materials for Lithium-ion batteries in Japan and China, aims to build in the US a new plant by 2018, spending about 10 billion yen (83 million dollars).

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Such serious move has been taken in order to extend - the Japanese company is already supplying anode materials for batteries in the Nissan LEAF, but it’s not enough and the company hopes to supply materials for Panasonic, Tesla Motors and some other manufacturers in the United States.

Well, taking the plunge isn’t the worth decision and the chances that the company and the final customer will benefit from it are quite high: the market for materials used in lithium-ion batteries is expected to reach 930 billion yen in 2018, up 60%  from 2013, according to market research company Fuji Keizai.

Well, numbers do sound to quite promising. Let’s go into details about the factory itself.

Where will they build the factory?

Alas, we don’t know the answer on that one. The Japanese company is still working out the precise location.

More likely, it’ll be somewhere in the Golden State, but we can’t be 100% sure for emissions regulations in the state of California are quite tightening, so, it might be any other place as well.

For instance, in the places like state of Nevada, where dealing with emissions regulations is much easier.

Why did they choose U.S. as a place for their all-new factory?

The answer is quite simple on that one – eagerness to expand.

Hitachi Chemical enjoys cutting the edge and holding the biggest global market share of about 30% of Asian market, but it’s not enough for them.

According to Hitachi calculations, the American plant will double or triple its output capacity.

You don’t have to be a rocket scientist to understand the potential of the American market.

Anyway, that’s good for the economy of Japan as well as for the economy of the United States – more job openings, taxes etc.

Will Hitachi be competing for their place under the sun with some other company?

Actually, it will be.

 Showa Denko has plans to invest 1 billion yen to 2 billion yen to double capacity around 2016. Nagano Prefecture facilities with an annual capacity of 3,000 tons are running at full clip, thanks to brisk demand in China and elsewhere in Asia. Chinese production may be launched as well.

Will they be producing something except materials for batteries?

The company also will step up production of carbon fiber used to make electrode materials more durable. In the latter half of the year, it will resume operations at a Kanagawa prefecture plant for the first time in three years to more than double output to an annual 200 tons.

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Well, good luck with that one.

We’ll be eagerly waiting it to open.

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