Furukawa Battery

Basic Information

Stock Code: 6937
Industry: Electrical Equipment
Category Detail: Manufacturing Machinery & Electrical Equipment
Prefecture: Kanagawa Prefecture
Establishment Year: September 1950
Listing Year: December 1961
Official Website: https://www.furukawadenchi.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Nichi Doro, Nippon Kodoshi, Edia, Central Glass, Kanto Denka Kogyo, Tanaka Chemical Lab, Mitsui Mining & Smelting, Double Scope, GS Yuasa Corporation, FDK, Chori

Overview

Furukawa Battery is an electrical equipment manufacturer founded in 1950, with automotive and industrial lead-acid batteries as its main products, and possesses diverse storage battery technologies including lithium-ion batteries for space use, making it a leading company in the industry.

Current Situation

Furukawa Battery boasts consolidated sales of around 60 billion yen and has established a solid position in the industry with advanced storage battery technology and a broad product lineup. Centered on automotive lead-acid batteries, it offers products for diverse fields including aircraft, railways, and space. In technological innovation, it excels in proprietary technologies such as the world's first space-use lithium-ion battery and the paper-container magnesium-air battery 'Magbox'. It also emphasizes sustainability, actively pursuing environmental improvements like the application of highly corrosion-resistant alloys. While expanding overseas primarily in Southeast Asia, it maintains a stable business base through strong relationships with major domestic automakers. Long-term, it is developing batteries for electric mobility and next-generation storage batteries, aiming for growth in renewable energy storage systems. Financially, it continues prudent management while strengthening capital investments and R&D for sustainable growth.

Trivia

Interesting Facts

The company that developed the world's first space lithium-ion battery.
Realized emergency magnesium-air battery 'Magbox' in a paper container.
A member of the Furukawa Group with a long history in battery manufacturing.
High domestic market share particularly in automotive lead-acid batteries.
Early adoption of statistical quality control, focusing on quality stability.
Head office located in Hodogaya-ku, Yokohama, Kanagawa Prefecture.
Belongs to parent Furukawa Electric as a consolidated subsidiary.
Stock price hit three-day consecutive limit up when paper emergency battery was announced.
Operates multiple manufacturing bases and joint ventures domestically and internationally.
Also handles railway batteries, supplying public transportation.
Engaged in technology partnerships with overseas companies for motorcycle batteries.
Developed and commercialized highly corrosion-resistant alloys to reduce environmental impact.
Business also includes power supply equipment and electrical construction besides batteries.
Holds ISO9001 and ISO14001 quality certifications.
Strong emphasis on R&D, possessing world-leading technologies.

Hidden Connections

Achieves integrated production from materials to products through collaboration within Furukawa Electric Group.
Jointly developed paper emergency battery with Toppan Printing, opening new markets.
Manufactured battery loaded on Hayabusa asteroid probe, contributing to space exploration.
Signed technical assistance contract with India's Excide to strengthen motorcycle battery business.
Received highest ranking in lead-acid battery industry from Japan Policy Finance Bank's environmental assessment.
Major clients centered on large automakers like Toyota Motor and Honda Motor.
Domestic lead-acid battery factory site converted to condominiums, contributing to local redevelopment.
Strong ties with Furukawa Group companies as a director company of Furukawa Sansui Association.

Future Outlook

Growth Drivers

Increasing battery demand from spread of electric and hybrid vehicles
Market growth in renewable energy storage systems
Rising demand for high-performance batteries in space and aviation fields
Demand growth for high-efficiency, long-life batteries due to strengthened environmental regulations
Business expansion in overseas emerging markets for automotive and industrial applications
Strengthening development of IoT-compatible intelligent battery packs
Promotion of energy-saving and disaster prevention products through public-private partnerships
Deepening differentiation from competitors through product performance improvements
Advanced storage battery recycling technology and environmental contributions
Efficiency improvements through digital transformation

Strategic Goals

Expand market share of high-performance long-life lead-acid batteries
Continue as technology leader in space and aviation lithium-ion batteries
Expand market for next-generation emergency batteries like Magbox
Strengthen manufacturing and sales bases in overseas emerging countries
Promote manufacturing process reforms to reduce environmental impact
Create new businesses through development of IoT-linked battery products
Achieve resource recycling rate over 90%
Maintain and strengthen industry-leading quality management system
Thoroughly implement and expand sustainable social contribution activities
Achieve sales scale over 80 billion yen

Business Segments

Automotive Battery Business

Overview

Supplies high-performance lead-acid batteries to major automakers domestically and internationally.

Competitiveness

Superiority in highly corrosion-resistant alloys and long-life technology

Customers

Domestic automakers (Toyota, Suzuki, Honda Motor)
Motorcycle manufacturers
Electric vehicle manufacturers
Automotive parts suppliers

Products

Automotive lead-acid batteries
Electric motorcycle batteries
Hybrid vehicle batteries
Battery management systems

Aerospace Battery Business

Overview

Provides highly reliable batteries for extreme environments in the aerospace field.

Competitiveness

Experience in developing the world's first space lithium-ion battery

Customers

Aircraft manufacturers
Defense industry
Space development agencies (JAXA, etc.)
Aerospace parts suppliers

Products

Aircraft lead and alkaline storage batteries
Space lithium-ion batteries
Custom-spec batteries

Railway and Public Transportation Equipment Batteries

Overview

Develops and supplies long-life, highly reliable storage batteries for railways.

Competitiveness

Abundant track record in supplying batteries for public transportation

Customers

Railway companies (JR East, West Japan Railway)
Public transportation operators
Vehicle manufacturers

Products

Railway vehicle lead-acid batteries
Battery-related equipment
Energy management systems

Industrial Batteries and Power Supply Equipment

Overview

Provides batteries and power equipment for a wide range of industrial fields.

Competitiveness

Diverse product lineup for various applications

Customers

Industrial equipment manufacturers
Solar power operators
Disaster prevention equipment manufacturers
Communications equipment manufacturers

Products

Industrial lead-acid batteries
Uninterruptible power supplies (UPS)
DC power systems
Battery chargers

Overseas Business

Overview

Accelerating local expansion primarily in Asian markets and expanding sales networks.

Competitiveness

Utilization of local joint venture production bases

Customers

Southeast Asian automakers
Local sales agents
Joint ventures (SIAM FURUKAWA, etc.)

Products

Locally produced lead-acid batteries
Magbox emergency batteries

Competitive Advantage

Strengths

Advanced storage battery technology
Diverse product lineup
Support system from parent company Furukawa Electric
Long industry track record and trust
Strong business relationships with major domestic automakers
World's first space lithium-ion battery development
Promotion of sustainability and environmental measures
International expansion leveraging overseas joint ventures
Manufacturing technology for high-durability storage batteries
Product development emphasizing safety
Secured diverse sales channels
High in-house technology development capabilities
Regionally integrated manufacturing facilities
Application technology across multiple domains
High-quality assurance through statistical quality control

Competitive Advantages

Exclusive possession of manufacturing technology for long-life batteries using highly corrosion-resistant alloys
High technological credibility from world's first development of battery for asteroid probe
Successful market differentiation through development of paper emergency magnesium-air battery
Strong management base as part of Furukawa Electric Group
Established delivery track record and reliability in domestic automotive and railway sectors
Early introduction of statistical quality control to maintain stable quality
Risk diversification and growth opportunities through application across multiple fields
Efficient international business expansion via overseas subsidiaries and joint ventures
Capable of responding to high-reliability demands from public projects and Ministry of Defense
Numerous patents on proprietary technologies to maintain differentiation from competitors
ESG investment対応 through environmentally considerate battery manufacturing
Stabilized sales from multiple directions by securing diverse sales routes
Aggressive in applying new technologies, continuously introducing cutting-edge products
High safety standards clearing international specifications in product development
Brand image and customer trust as an established company

Threats

Intensifying large-scale investment competition in lithium battery field
Changes in storage battery demand structure due to electrification of vehicles
Rising raw material prices and supply instability
Technology catch-up by overseas emerging companies
Increased compliance costs from strengthened regulations
Rising manufacturing costs for environmental regulation compliance
Growing risks from international trade friction and tariffs
Risk of obsolescence of existing products due to new technologies
Vulnerability in management structure dependent on group
Political and economic risks at overseas bases
Risk of business acquisition by large capital
Profit pressure from intensifying market price competition

Innovations

2024: Strengthening Development of Next-Generation Long-Life Lead-Acid Batteries

Overview: Successfully improved performance of lead-acid batteries using highly corrosion-resistant alloy C21, significantly extending lifespan of automotive batteries.
Impact: Enhanced product competitiveness and increased customer satisfaction

2023: Market Expansion of Paper Emergency Magnesium-Air Battery Magbox

Overview: Expanded paper-container emergency battery 'Magbox' to local governments, entering the disaster response market.
Impact: Established new revenue source

2022: Advanced Space Lithium-Ion Battery Pack Technology

Overview: Developed robust, high-efficiency lithium-ion battery for asteroid probes, demonstrating high reliability.
Impact: Secured competitive edge in space business

2021: Development of High-Output Lead-Acid Batteries for Electric Motorcycles

Overview: Commercialized lightweight, high-output lead-acid batteries for demanding motorcycles, strengthening position in Asian markets.
Impact: Contributed to overseas sales expansion

2020: Company-Wide Deployment of Statistical Quality Control

Overview: Introduced statistical quality control into manufacturing lines, achieving improved yields and stabilized product quality.
Impact: Cost reduction through 5% improvement in defect rate

Sustainability

Promoting longer life of lead-acid batteries through application of highly corrosion-resistant alloys
Reducing waste and improving recycling rates in manufacturing processes
Compliance with environmental regulations and management of hazardous substance reduction
Energy-saving equipment investments and CO2 emission reduction plans
Conducting environmental awareness activities in collaboration with local communities
Introduction of safe lead recovery and reuse systems
Maintaining ISO14001 certification and strengthening environmental management
Establishing sustainable procurement of battery materials
Promoting launch of environmentally compatible products for electric vehicle market
Contributing to waste reduction through improved product safety and durability