Toyota Motor is thinking about making batteries for electric vehicles (EV) with Panasonic Corp, as it increases battery development to help fulfill its goal for green vehicles to comprise half of worldwide sales by 2030.
The joint statement on Wednesday builds on an existing arrangement under which Panasonic – a global market leader for vehicle lithium-ion batteries – constructs batteries for Toyota’s petrol-electric and plug-in hybrid vehicles.
The strategy to co-operate more closely on batteries comes as automakers contend to develop more EVs in compliance with tightening policies worldwide to reduce vehicle emissions.
Toyota’s battery requirements are likely to increase after it stated in 2016 it would add fully electric vehicles to its item line-up in the early 2020s, broadening a green-car method which has concentrated on plug-in hybrid and fuel-cell vehicles (FCV).
“The auto market faces numerous difficulties to developing next-generation batteries which are difficult for automakers or battery makers to tackle on their own,” Toyota CEO Akio Toyoda said at a joint press conference.
“It would be hard for us to meet our 2030 goals offered the current pace of battery advancement. That’s why we’re looking for Panasonic and other companies to help us establish ever-better cars and batteries.”
Toyoda stated the automaker’s yearly sales target for petrol-electric and plug-in hybrids is 4.5 million vehicles by 2030, and 1.0 million units for EVs and FCVs.
Toyota in September established an EV technology venture with peer Mazda Motor and provider Denso. The venture shows a pattern of automakers and parts makers partnering to develop the next-generation cars, to decrease research, development and production expenses.
In Panasonic, Toyota is partnering the major battery supplier of major U.S. EV maker Tesla Inc. With a 29 percent market share, Panasonic is the biggest provider of batteries for plug-in hybrids and EVs, revealed January-June data from Nomura Research.
The pair plan to expand advancement of prismatic – flat, pouch-shaped – batteries with higher energy density. Panasonic currently makes prismatic batteries for Toyota, whereas for Tesla, it makes cylindrical batteries of a type much like those used in laptops.
