2006 News
2006/05/09

Molicel Gaining Niche Lithium-ion Cell Market

Aiming to decrease manufacturing costs, most lithium-ion battery companies in Taiwan have shifted production sites to China, where human labor is cheaper. Another tactic is to customize the batteries in order to create additional value. Amidst the competition, E-one has successfully put lithium-ion batteries to various applications, and switched from the price-competitive 3C market to the portable power tool industry. More importantly, they have achieved great technology break-through in the production of the lithium-ion battery. Mr. Han-Cheng Kuo, the CEO of E-ONE Moli Energy, explains that, “Batteries for power tool usually needs higher voltage. Batteries were most often used in the past. Besides, the environment in which these equipment are used are mostly high-temperature, high-convulsion. Thus, they need batteries that are highly stable; lithium-ion batteries almost had no play in this field.

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Now, through the innovation of battery materials and product structure, E-one uses LiMn materials, instead of LiCd, to develop lithium-ion batteries with higher voltage and stability. They have successfully entered the North American and European markets. In 2000, they took over the Canadian NEC MOLI cylinder lithium-ion battery facility. And in 2003, they introduced the IMR-26700 generation of high efficiency battery. In 2005, they partnered up with renowned electrical equipment producer, Milwaukee, to produce lithium-ion batteries intended for electrical equipment use. Together, they also developed a series of wireless electrical equipment that specifically requires that type of batteries. This new series is the first in the world to use lithium-ion battery as a replacement of the traditional NiCd battery.
 
「“Originally, E-One Moli Energy also produces lithium-ion battery intended for laptop use. However, the price competition is too fierce in the 3C industry. At that time, our corporation was still relatively small, so we backed out from the competition, and switched focus to the development of lithium-ion batteries intended for electrical equipment and e-automobiles,” Dr. Kuo explains. The batteries development for power tool usage needs constant cooperation and exchange of information with clients. Molicel combined great technology expertise with the flexibility of Taiwanese dealers. Also, they maintained great relationship with their downstream clients. Thus, they were able to achieve great results in the development of battery products.
 
Other than power tool (including electrical skateboard, e-bike, solar-power vehicles, etc.), E-one also sees great potential in the lithium-ion battery industry. Currently, the company’s lithium-ion battery production is mainly based in Canada and Tainan Science-Based Industrial Park (Taiwan). Currently, production can reach 700 thousand batteries a year. Their goal is to reach production of 10 million a year in the future. As regard to the development prospect of lithium-ion battery, Mr. Han-Cheng Kuo believes it still has huge potentials. He reasons, “Just like that UPS used to use lead batteries, now it is also replaceable by lithium-ion battery. Not only so, solar powered, automobile use, fuel batteries, and electrical batteries are all potentially replaceable by lithium-ion batteries.
 
To restructure the reorganize of Taiwan’s electrical industry, the Ministry of Production partnered up with 40 battery producers (both upstream and downstream). Together, they founded the “Taiwan Battery Technology Development Union” ten years ago. And by this year’s April, the union has evolved to become “Taiwan Battery Association; TBA. E-One is one of the key members. Being also TBA’s managing directors, Mr. Han-Cheng Kuo states that underestimating lithium-ion battery’s market potential by Taiwanese dealers was the main cause for its mediocre performance. Not only so, the investment in the market was very conservative. Thus, the production level can be greatly amplified by the increasing cooperation of the upstream and downstream dealers, and the restructuring of resources. He hopes that through the formation of TBA, Taiwan’s battery industry will receive higher attention for healthy long term growth.
 
 


To contact the reporters on this story: Daisy Huang (MKT)+886-2-2567-3500 #823