01 November 2012 11:43 [Source: ICIS news]
SINGAPORE (ICIS)--Itochu Corporation will start contract services for the construction of manufacturing plants for lithium-ion and other secondary batteries in North America, the Japanese trading firm said on Thursday.
Itochu said it will work together with US-based machinery sales company TEXMAC Inc and InSpec Group.
“Demand for secondary batteries in the North American market is expected to continue to grow, not only for use in hybrid and electric vehicles, but also for stationary power sources including housing, large facilities of various industries and grid-scale storage applications," the firm said.
"As a result, the expansion of production capacity for secondary batteries has become essential in the market,” it added.
Itochu said it is relocating its operations to North America because of the strong Japanese yen and stiff competition.
“In addition, reflecting the recent strong yen, price competition in the secondary battery sector has been escalating. In response, Japanese manufacturers of raw materials for batteries (positive-electrode materials, negative-electrode materials, separators and electrolytic solutions) and battery manufacturers have been accelerating their initiatives to relocate their manufacturing bases to North America,” it added in the statement.
Itochu, which has around 130 bases in 67 countries, engages in the trading of minerals, energy, chemicals, among a number of its core products.
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