Sony Corp. has just teamed up with Hydro-Québec to create a joint venture called Esstalion Technologies, Inc. that is designed to utilise Sony’s expertise in battery technology as well as Hydro-Québec’s knowledge of electric power systems to further research in large-scale energy storage solutions. This covers including integrating renewable energy into power grids, by addressing natual imabalances created by irregular natural energy supply. Disaster recovery is also expected to benefit from further exploration of this area and other areas.

 …the subject of the joint venture company’s research and development (of) energy storage systems for power grids that use lithium-ion battery technologies… 

This piece of news is a rare look into what’s going on in Sony’s Devices segment. It can be about as mysterious as Wayne Enterprises’ R&D department at the best of times.

Read on to find out more about Esstalion and the Devices segment.

Esstalion may sound like a first-rank, spinach-eating horse, but the name is much more practical, Sony tells us. Esstalion was named via ESS (Energy Storage Systems), Station (as a venue for energy management) and Lithium-ion, which represents energy storage systems for power grids that use lithium-ion battery technologies. (Which suit at the table has to create this?).

Sony explained in further detail what the joint venture will research, this is a long one so hang in there:

 the new company intends to research and develop a highly safe and reliable system for large-scale applications, as well as battery material technology suitable for use within electric power systems, and explore their use in a wide variety of applications, such as meeting excess demand during peak times, and the integrating renewable energy sources into power grids. 

Hydro Québec commented back in April how important the area of large-scale energy storage was becoming as we move into a renewable energy society:

 Forecasts indicate that demand for large-scale energy storage systems will increase in the future, to meet high level demand for electric power during peak times, stabilize fluctuations in electricity generated by renewable energy sources such as solar and wind power that are gaining traction, and secure a stable power supply in case of outages or disasters. 

Corporate Social Responsibility, Device Strategy

This venture goes further than mining knowledge for the future benefit of both corporations. A part of the aim according to Sony is about contributing to society and enriching people’s lives:

 The key for the successful growth of Sony’s battery business in the future will be the market for large-scale energy storage systems for power grids and, by using Hydro-Québec’s wealth of knowledge and technological expertise as well as focusing on research development, I believe we will be able to produce results. Furthermore, we will strive to contribute to society and enrich people’s daily lives by building and popularizing an extremely safe and reliable energy infrastructure. 

Tomoyuki Suzuki, EVP, Corporate Executive Officer, Device Solutions Business, RDS Platform, Sony Corporation

Full year 2013 results by segment. Click to enlarge.

This provides insight into the relevance of the Devices segment within Sony Corporation. It’s clearly one of the more industry and corporate areas and so gets less attention than consumer-focussed Game and Mobile. But we’re left wondering at the end of the financial year when the results come in, what is that division? More than that, Sony is clearly up to the challenge of cutting off dead wood in an effort to stay relevant and profitable. We know that through the TV and PC business announcements. The ‘great sales but still a loss’ full year financial results provides part of the motivation for change. Investors and media compound the badgering. Sony tells us that the three core areas of the corp. today is Game, Mobile and Imaging. The rest of their involvements need to produce synergy – each area needs to connect with the others and produce a valuable sum-of-all-parts or, it’s irrelevant. At least in broader corporation strategy terms. The businesses in a corporation don’t work like throwing items in a shopping basket – instead, it’s more like a recipe, each item connects with the rest to produce something greater together.

Sony’s newer ventures have been proving profitable. Despite the consumer and media popularity of PlayStations and Xperias, few would guess that Sony Corp’s. most profitable area today is financial services. Plus, they have been branching out into medical consistently for a few years now. Energy solutions and ‘green tech.’ are always in. We’ll keep a close eye on how Esstalion performs.

You can find the full Sony news release on this here.

Image credits: title, My Minds Eye79.

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Should Devices stay within Sony Corp?