Sunday, April 21, 2024
NewsToyota wants more batteries, quickly

Toyota wants more batteries, quickly

  • The buy out should be completed by the end of March.

  • Toyota wants to become a key player in the EV market by the end of 2030.


 

The Toyota division embodies the resistance that exists in the automotive world regarding the industry’s electric future. For some years now, the automaker has been proclaiming that the future of the automobile depends on a multitude of energy solutions, rather than relying entirely on electric propulsion.

2024 Toyota bZ4X | Photo: Toyota

Now it seems that Toyota, even if its market share in the electric niche is small, intends to step up the pace, at least if this announcement concerning the takeover of its partner in the jointly owned company, Primearth EV Energy Co. is anything to go by. Indeed, a press release from the Japanese automaker confirms the news, with the acquisition expected to be completed by the end of March.

Primearth EV Energy Co. was one of the first companies to produce batteries for the automotive industry when Toyota launched its very first hybrid car, the Prius, in the late 90s. At the start of the agreement, Panasonic held a 60% stake in the company, while Toyota held 40%. Over the years, however, Toyota increased its investment in the company, culminating in the complete acquisition in 2024.

This acquisition points directly to an acceleration in battery production for Toyota’s EV push. Even if, at the time of writing, the Japanese giant is still focusing primarily on its hybrid and plug-in hybrid vehicles, that doesn’t mean it won’t become one of the major players in tomorrow’s electric cars.

The acquisition of Primearth Energy Co. also means that a new plant will be built in 2026 to accelerate battery production for the brand’s forthcoming 100% electric models.

Despite its status as the world’s number-one carmaker in general, Toyota remains a much smaller player in the electric segment. Compared with Tesla, which sold no less than 1.8 million units last year, the Japanese automaker struggled to sell just over 100,000 electric vehicles globally.

However, Toyota is not to be counted out, as it has the production capacity to turn things around. Its goal for 2026 is to reach 1.5 million units globally, and to increase this figure to 3.5 million electric vehicles by 2030.

During this short period, Toyota also intends to accelerate the development of new battery types, including solid-state batteries and even the next generation of lithium-ion batteries.

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