Nikkei: Toyota and Panasonic to set up JV for production of EV batteries and development of next-gen systems
The Nikkei said it had learned that Toyota Motor and Panasonic will set up a joint venture in 2020 to manufacture EV batteries, with a focus on cost and scale and an eye toward rising Chinese players.
The Nikkei reported that the JV will be announced as soon as this week. Toyota reportedly will hold 51% of the venture. Panasonic, with the other 49%, will shift five automotive battery production facilities in Japan and China to the new company.
The Nikkei said that Panasonic’s plant operated in partnership with Tesla will not be included.
The plan is to supply to Mazda Motor, a Toyota partner on electric car technology, as well as Toyota subsidiary Daihatsu Motor and Subaru. The joint venture will encourage Honda Motor, which uses Panasonic batteries in hybrid vehicles, to adopt the new cells.
Panasonic and Toyota will also team up to develop next-generation batteries, an undertaking that requires enormous cash outlays and significant technical expertise. Projects will include solid-state lithium batteries, which have a high capacity—a must for improving the range of electric cars—and are safer than existing options. The two companies had reached a deal in 2017 to explore a tie-up in the field.