GS Yuasa to raise $397M for Li-ion battery development

Japanese battery maker GS Yuasa (TYO:6674) said today it plans to raise ¥36.7 billion ($397 million) by publicly offering 40 million new shares. It could also issue 6 million additional shares in an overallotment.

The proceeds are expected to be invested in lithium-ion battery production equipment at three of its subsidiaries.

Curtis Aldrich, a spokesman with the company's Alpharetta, Ga. subsidiary GS Yuasa Lithium Power, was unable to provide the Cleantech Group with specifics of how these new funds could be applied. However, he indicated the company's U.S. arm is seeking Department of Energy stimulus funds and hopes to add manufacturing capabilities of its lithium-ion batteries in the United States. 

Formed in 2004, the holding company GS Yuasa is a merger of Japan Storage Battery and Yuasa. The parent company, GS Yuasa Group, has 81 subsidiaries and 42 affiliated companies that manufacture and supply batteries, power supply systems, lighting equipment, specialty other electrical equipment. Those battery technologies range from thermal and lead-acid to lithium-ion.

Honda Motor is developing lithium-ion battery packs with GS Yuasa for its hybrid vehicles (see Toyota plans to take on Honda with low-cost hybrid for 2011), but buys its nickel-metal hydride batteries from Tokyo's Sanyo Electric (see Mitsubishi EVs to be tested in California).

In June, Tokyo-based Mitsubishi Motors unveiled a production version i-MiEV next-generation vehicle, expected to go on sale in the Japanese market in late July (see Mitsubishi brings next-gen EV mini to market). The name stands for Mitsubishi innovative Electric Vehicle.

The vehicle’s battery was developed by Lithium Energy Japan, a joint venture of Mitsubishi Motors, Tokyo-based parent Mitsubishi Corp., and GS Yuasa. The car was originally unveiled at the 2008 New York International Auto Show (see Mitsubishi shows off tiny electric car).