Toyota will spend $13.5 billion on battery production and development by 2030
The automaker wants to cut battery costs by 30% by developing cheaper batteries
Toyota is interested in solid-state batteries which offer advantages over liquid-state units
Despite having led the way in hybrid powertrains with the Prius, over twenty years ago, Toyota is late to the party in terms of electric vehicles, having none in its current North American portfolio.
The automaker is decided to remedy this by spending colossal sums on research and development as well as production of battery packs to be used in future EV the company is promising.
Indeed, Toyota has announced its goal to sell 8 million fully or partially electric vehicles by 2030. Out of this total, 2 million will be fully electric or powered by fuel cells and the remainder will be hybrids and plug-in hybrids.
A desire to save money in the long run is motivating Toyota to spend $13.5 billion to create cheaper to build batteries.
It seems the company has a great interest in solid-state batteries which are more power dense than the liquid-state lithium-ion units used by the majority of EV and they are less susceptible to catch fire.
A more power dense battery means it can be smaller while achieving the same range, thus reducing costs and weight, two of the biggest drawbacks to current electric cars.
These batteries are to be used both in fully electric vehicles and gasoline electric cars, according to Toyota.
Other manufacturers are taking similar actions, Volkswagen will build six new factories to produce batteries before 2030, General Motors will spent $8 million on two battery plants that will also produce for Honda and Ford announced a plan to spend $30 billion on electric cars by 2025.