Big Taiwanese Conglomerates Eye Li-ion Power-Cell Biz

Taipei, Nov. 16, 2009 (CENS)--Big conglomerates in Taiwan are aggressively eyeing the lithium-ion power-cell business, regarded as very promising in the future, including the Formosa Plastic Group and AU Optronics Corp. (AUO) Group.

The spokesman for AUO, the largest thin film transistor-liquid crystal display (TFT-LCD) panel maker in Taiwan, recently announced the company has been evaluating energy service and automobile-related application products, without making new progress.

The Formosa Plastic Group already set up a subsidiary, the Formosa Energy & Material Technology Co., Ltd. (FEMTC), to produce upstream anode materials, and has reportedly kicked off deployments in other key sectors such as electrolyte, core, battery pack etc.

According to industry insiders, the fuel-cell task force in Nan Ya PCB Corp. of the group has shifted its focus to lithium-ion power cells, while the company already can produce electrolyte in-house.

Insiders also pointed out that AUO has been actively contacting battery-related research institutes and makers as well as electric-vehicle manufacturers, so the company might venture into lithium-ion power cells.

Market observers said that AUO has stepped into solar-cell panel production and the development of energy-storage devices as the lithium-ion batteries is a reasonable path. TFT-LCD panels and lithium-ion power cells share some production processes, the sources said, though there are also many technical thresholds for a panel maker to cross.

The lithium-ion power cell is a hot topic in recent years for such storage accounts for approximately 30% of an electric vehicle (EV)'s overall cost. Some experts pointed out that the safety level and prices would be decisive for lithium-ion power cell application in transportation vehicles.

The Chinese central government has announced to push a 50 billion EV subsidy program over the next four years, while the American government also claims to invest US$2.4 billion to build the nation into a major lithium-ion production base to consolidate its EV- making position. Ever more companies are investing in lithium-ion power-cell production, especially those in China, the U.S., Japan, South Korea and Taiwan.