2004 News
2004/12/15

Dr. Jinn-Lung Wang interviewed by 2004 Taipei Power Forum – Nikkei Electronics Asia

Q:Can Dr. Wang describe how Molicel manages its main productions
A:
Our company specializes in lithium-ion cell production. Since taking over Moli (Canada) in 2000, our company divided up production as having Tainan site focusing on prismatic cell and Canadian site focusing on cylinder cell. The main Canadian products include 18650, 26650 (high-power), and 26700 (cylinder power cell). Since the Taiwan site switched to producing 10mm prismatic lithium-ion cell in 2002 Q3, both stations of our company have targeted focus on producing cells for laptops, portable DVD, etc.
 
In this serial industry, the quality and property of batteries are judged critically. Only firms with great strategy can meet the demands. Molicel has also collaborated with HP Compaq and Apple for product development. Because our merchandise has received continual approval from numerous international big firms, the profit grew one fold in 2003 compare to 2002. This amounts to around 23 hundred million NTD.
 
This makes us the 16th fastest growing firm in Taiwan according to Tianxia Magazine. We forecast continual small level growth in the year of 2004. And because of market demand, Molicel will build a circular line in the Canadian site which can simultaneously manufacture 18650 high rate cell and 26700 power cells. The line structure is expected to be completed by December and will start manufacturing immediately. And since demands for high quality lithium-ion cells for mobile phones, PDA, and DSC are growing rapidly, Molicel will restart production of 5mm and 6mm high-capacity small sized lithium-ion batteries. In all, Molicel’s product line will become more diversified, and better attuned to customer needs and market demands.
 
Q:Please describe the main products that Molicel will launch during this show.
A:
Market needs always shape the development of products. Molicel’s focus will be towards high-capacity and high-power products. In the 2004 Taipei International Power convention, Molicel will launch the 18650 (cylinder-cell) series and the 103459 (prismatic-cell) series. And to show that our high-power product line is near the completion stage, the 26700 series of lithium-ion cylinder will be the focus of our show.
 
Q:What is Molicel’s future prospect? Can you give a brief description of the schedule of the new product launch?
A:
The developments of portable digital device revolutionizes every day. And to fit into the trend of developing multi-function, light-weighted devices, increasing the capacity density of lithium-ion cell will continue to be a chief focus. Also, because Molicel possess sophisticated lithium-maganate materials application technology, we have great potential in developing high-power batteries. Thus it will be another focus. Molcel’s 2.4Ah18650 cylinder cell is a leading design in its expertise market. We will continue to renovate this series of design, and we estimate to launch a higher capacity series by 2005/Q3. And because market demands continue to rise for 5mm and 6mm small sized battery (high power and high capacity), Molicel will begin a new production line for such batteries (save the 103450 series) starting 2005/Q1.
 
Q:What is your perspective on Molicel’s market potential and products usage?
A:
Rechargeable lithium-ion batteries arise from the early development of nickel cadmium batteries and nickel metal hydride batteries. Because different digital devices requires the support from varying battery properties, the lithium-ion battery (with high capacity and high power) slowly took over the market of these two batteries over the last ten years. Nevertheless, the market demands still diversify to a certain degree. For instance, domestic devices such as cordless phones, power tools, and most wireless handsets still require the use of nickel cadmium and nickel metal hydride. The costs, application technology, and user preferences penetrate the electrical system development of these batteries. Thus, for the area of replacement, lithium-ion has already achieved a wide degree of market-takeover. After launching production of traction batteries, Molicel will change the application properties of such product. As for new markets, lithium-ion cell will continue to be the focusing concept of developing new products for power system. To specify, the likes of the DVD projector in 2003 and the PMP portable devices in 2004 al use lithium-ion cell as power provider.
 
On the whole, portable digital device development diversifies and revolutionizes very quickly. Thus, the demand for better batteries also grows. And since production capacity from Japanese and Korean firms continues to increase, the market will face a short period of supply surpassing demand. This will affect the product prices. Also, the cost of producing lithium colbotate rises incessantly, but the product price cannot rise along. Add this along with the disequilibrium of the market, Molicel faces great pressure in minimizing price outlays to ensure survival in the industry. In such challenging market conditions, it helps to flex the production line to develop niche market products. Irregardless, Molicel will always seek to decrease the costs of materials and productions to lower product prices.
 
With the continual breakthroughs of the fuel battery and zinc-air battery technologies, the future of the power industry is expansive. It supporting portable digital devices, we anticipate that lithium-ion cell will be our product focus. Limited by the controllable, lithium-ion cell will have less of a market in great sized power systems. Yet on the other hand, fuel battery and zinc-air battery may be just the solution for such demand markets.
 



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