Bosch and Samsung are forming a joint venture to produce lithium-ion hybrid vehicle batteries.

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The 50:50 joint venture will be called SB LiMotive and will be launched in September. It will start production in 2010 in South Korea with initial capital of US$20m. A Samsung spokesman told Reuters that a minimum of $500m would be invested in the venture over the next 4-5 years.


Automobilwoche reported that production of the battery cells would start in 2010 and that complete battery systems would be produced from 2011.


The joint venture is with Samsung SDI, which produces flat screens and lithium-ion batteries. To date it has focused on components for computers and phones. It has been jointly developing batteries for hybrid electric vehicles with an un-named vehicle manufacturer.


Samsung already produces batteries for Bosch power tools and said it plans to increase the proportion of rechargeable batteries, including lithium-ion, to more than 20% of its sales by the end of 2008 from 18% in 2007.


Lithium-ion battery technology is considered a key technology for the future of hybrid drivetrains. Bosch has hybrid expertise with the electronics, battery management and electric drivetrain but has no desire to produce the batteries itself. Vehicle manufacturers and component suppliers are eagerly seeking partners in battery cell technology.


Bosch’s main competitor, Continental, is due to install a lithium-ion battery in the S-Class next year. This technology is likely also be available to other manufacturers.


Audi has formed a partnership with Sanyo to supply lithium-ion batteries to the Volkswagen group from 2010 and Magna Steyr has also developed a lithium-ion battery. Renault and Nissan are cooperating with NEC and Toyota is working with Panasonic.


Bosch has said it is aiming to be the global market leader in hybrid powertrains. It says that it will do a lot of the system integration work that Japanese battery manufacturers are not doing.


Bosch estimates that the global market for hybrid cars will reach 3m units by 2015. This year 620,000 hybrid cars are expected to be registered, up from 580,000 last year. This includes mild hybrids where the engine is shut down when the vehicle stops, and micro hybrids where brake energy is recovered.

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