Saft expects limited financial impact after Airbus drops lithium-ion batteries

French battery manufacturer Saft expects limited financial impact over Airbus’s decision to drop the use of lithium-ion batteries in its wide-bodied A350 XWB jetliner.

The company had secured a $200m contract to supply lithium-ion batteries to the wide-bodied aircraft for over 30 years and 80% of this contract value was expected to come from replacement batteries.

Saft chief executive John Searle was quoted by Reuters as saying it was an important business agreement, but forms only a small portion of the company’s total sales.

According to Searle, the decision taken by Airbus would not affect its sales in 2013 and 2014.

Saft expects the sales of lithium-ion batteries to hybrid buses and trams, and electricity back-up storage to contribute to most of its growth in fiscal 2013.

Saft reported 4.9% jump in revenue to €598m ($798.08m) in fiscal 2012 over the previous year, and 0.8% rise in operating profit to $136.45m.

Airbus has shown preference to nickel cadmium batteries, over lithium-ion types, for at least in the first few A350 XWB aeroplanes that will be delivered in the second half of 2014.

The European manufacturer is concerned that the investigations into the Boeing 787 Dreamliners‘ lithium-ion battery problems could lead to changes in regulations, which could disrupt the schedule of A350’s entry into service.

Saft, which has been the established supplier of batteries to Airbus, intends to carry out the flight test programme on the A350 using lithium ion batteries.

Lighter than traditional nickel cadmium batteries, lithium-ion units have been used in phones and laptops for several years, but their use is relatively new in industrial applications such as electrical systems of aircraft.

However, the main disadvantage is that it is highly prone to explosions if mishandled.

Saft is expected to be the main supplier of alternative batteries to Airbus’s 350 jetliner, which will make its maiden flight in mid-2013 and undergo a series of flight tests prior to its certification from European aviation authorities by early 2014.

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Image: Airbus has shown preference to nickel cadmium batteries, over lithium-ion batteries for at least in the first few A350 XWB aeroplanes that will be delivered in the second half of 2014. Photo: Airbus SAS / Fixion.