Johnson Controls Inc wants to end its lithium-ion battery joint venture with Saft after filing a petition with the Delaware Court of Chancery.
The filing is under the Dispute Resolution Provisions outlined in their agreement back in January, 2006, with Johnson Controls advising Saft that the dispute is based on a wish to expand the Johnson Controls-Saft Advanced Power Solutions beyond the original limits set. Saft intends to oppose the filing.
According to reports, neither Johnson Controls-Saft nor any of its subsidiaries are part of the legal action and the matter has simply arisen due to a disagreement about the future direction of the joint venture.
Originally the venture was meant to develop and manufacture lithium-ion automotive battery solutions. However, Johnson Controls believes that as vehicle power train technologies evolve and new markets emerge it must have access to multiple alternative technologies to participate more broadly across the energy storage space.
Saft, meanwhile, has confidence in the strategy and believes there is a profitable future under the existing business plan. It says it has made a number of proposals in an effort to reach a compromise agreement and avoid any legal procedure but while it would consider some adjustments it would not be in its strategic interest to address through Johnson Controls-Saft certain lithium-ion markets where it already is enjoying rapid development.
