Hitachi Maxell To Boost Li-Ion Capacity

Hitachi Maxell Ltd. will increase its production capacity for Li-ion batteries used in cellular phones, power tools and other devices by 50%.

The firm intends to invest about ¥10 billion by fiscal 2010 to build a factory in Kyoto, Japan, as well as to expand capacity at its Chinese facilities. The changes are expected to raise its total production capacity to 25 million units a month. The move comes despite safety concerns following a string of accidents involving notebook computer batteries suddenly catching fire.

The plant, set to open in spring 2009, will have 7,100 square meters of floor space. The facility will also manufacture electrodes, a key component for the batteries.

In addition, Hitachi Maxell will gradually expand facilities at its plant in Wuxi, China, where it assembles batteries.