Share price of Johnson Controls, Inc. (NYSE: JCI) increased 0.06% on March 21, 2014, after the company announced an agreement with Fraunhofer Gesellschaft. Under this deal, the companies will develop energy efficient, cost-effective cooling systems for vehicle batteries.
Scientists and engineers of Johnson Controls will collaborate with the Fraunhofer's Institute for Environmental, Safety and Energy Technology (UMSICHT) and the Institute for Manufacturing Technology and Advanced Materials (IFAM). They will primarily focus on developing technologies and thermal management strategies for Lithium-ion battery packs.
The initial work will begin with the 48-Volt Micro Hybrid battery technology. Johnson Controls stated that the Micro Hybrid battery technology reduces fuel consumption by 15%, thus, offering improved fuel efficiency and helping vehicles meet emissions standards.
The technology is expected to be used in Europe first, followed by the U.S. However, it is likely to gain global acceptance starting 2020. The cooling system will improve energy storage solutions provided by Johnson Controls. This will allow the company to satisfy the rising demand for energy storage systems along with improving the function, package and cost of these systems.
Johnson Controls' Power Solutions also works with other partners including Argonne National Lab, the University of Wisconsin System, Lawrence Technological University, Ohio State University, the Milwaukee School of Engineering, Hannover University, Aachen University, the University of Cambridge and the University of Science and Technology - Beijing. The partners actively cooperate with Johnson Controls to develop enhanced battery technologies.
Johnson Controls – Zacks Rank #3 (Hold) stock – is a supplier of automotive interiors, batteries, and other control equipment.
Other better-ranked stocks in the same industry include Gentherm Incorporated (NASDAQ: THRM), STRATTEC Security Corporation (NASDAQ: STRT) and Valeo SA (VLEEY). All these stocks carry a Zacks Rank #1 (Strong Buy).
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