Following an agreement with Panasonic to acquire complete control of Primearth EV Energy (PEVE), Toyota is increasing its capacity to mass-produce “a wide variety” of EV batteries.

Primearth EV Energy is purchased by Toyota from Panasonic.

On Tuesday, the carmaker and Panasonic reached an agreement for Primearth EV Energy to become a wholly owned subsidiary.

According to Toyota, the acquisition will improve its capacity to create EV batteries in large quantities. Officially, it’s supposed to happen later this month.

Originally called Panasonic EV Energy, Primearth EV Energy was founded in December 1996. Toyota had 40% of the joint venture, with Panasonic owning 60% of it.

Following its entry into the hybrid vehicle market, Toyota raised its ownership to 60% in 2005. Then, in June 2010, Panasonic retained 19.5% of the company after Toyota acquired 80.5% of it. With Tuesday’s announcement, Toyota will be able to fully acquire the battery business.

Hybrid battery mass production is done by Toyota-affiliated enterprises, such as PEVE, Toyota Industries Corp., and Prime Planet Energy & Solutions (Toyota 51%, Panasonic 49%). PEVE will shortly start producing batteries for EVs and PHEVs, whereas Prime Planet already does.

Toyota intends to carry on developing and manufacturing EV batteries in large quantities with these businesses. The company is changing its focus to produce “a wide range” of batteries for electric vehicles in bulk.

Toyota states that this action will enable it to “responsibly respond to growing battery demand.” In the meantime, the automaker wants to increase the efficiency and range of its electric cars to make them more competitive.

Toyota is going to start making EV batteries in bulk.

In June of last year, Toyota announced that it was looking to accelerate its plans for EV battery research after making a “technological breakthrough.”

Last year, Toyota unveiled their roadmap for EV batteries, which featured a variety of kinds. Next-generation batteries are expected to be released in 2026 and offer a WLTP driving range of almost 500 miles (800 km) and 20 minutes quick charging.

The bZ4X, Toyota’s only global EV, has a driving range of up to 252 miles (EPA) or 310 miles (500 km) WLTP.

The carmaker intends to introduce two iterations of its upcoming EV battery. A Performance is anticipated to have a WLTP driving range of about 500 miles (800 km) and a 20-minute quick charge at a 20% less price than the bZ4X. The first iteration is scheduled for release in 2026.

The Popularisation version, which has a WLTP driving range of over 372 miles (600 km) and a 30-minute quick charge at a 40% cheaper cost than its existing EV, comes next. The release of this version is scheduled for 2026–2027.

Toyota says it will introduce a high-performance EV battery with a WLTP driving range of more than 621 miles (1,000 km) in 2027 or 2028. Additionally, it will be 10% less expensive than next-generation batteries and have quick charging capabilities for 20 minutes.

For years, Toyota has made plans to introduce solid-state electric vehicle batteries. In an attempt to overtake Tesla, the company announced earlier this year that it will be releasing solid-state EV batteries with a WLTP range of up to 750 miles (1,200 km). Even towards the end of the decade, Toyota anticipates modest output.

Electrek’s Opinion

For years, Toyota has been announcing the release of next-generation EV batteries. Initial releases of its solid-state EV batteries were scheduled for 2021 and 2022. It appears that mass production won’t start until 2030.

Although the carmaker sold more than 100,000 electric vehicles for the first time last year, it still represents less than 1% of the more than 11.2 million cars sold.

Rival Volkswagen, on the other hand, sold 394,000 all electric cars last year, or 8% of total sales. And it is the minimum. Many automakers are already selling much over ten percent, if not all, of their vehicles as electric vehicles.

Toyota is adamant about sticking with its hybrid sales strategies, which include EVs, FCEVs, PHEVs, and HEVs. With others doubling down on completely electric technology, Toyota’s choice is likely to put them further behind the pack.

In contrast, the CEO of Toyota predicts that by 2030, EV sales would only make up 30% of US new car sales.