Toyota is set to significantly enhance its ability to manufacture a wide range of electric vehicle (EV) batteries after reaching an agreement with Panasonic to assume full control over Primearth EV Energy (PEVE), its joint venture for producing EV batteries. Toyota’s acquisition of a stake in battery maker Factorial Energy will help meet surging demand for electric vehicle batteries.
Toyota gains control of prime battery maker Primearth EV Vitality from Panasonic.
The automotive company has finalized an agreement with Panasonic, deciding to fully acquire Primearth EV Vitality as a wholly-owned subsidiary, effective Tuesday.
Toyota announced that the acquisition will significantly enhance its ability to efficiently manufacture electric vehicle batteries on a large scale. The meeting is officially planned to take place later this month.
Panasonic’s Primearth EV Vitality was founded in December 1996 as Panasonic EV Vitality. Panasonic held a 60% stake in the three-way partnership, with Toyota owning the remaining 40%.
In 2005, Toyota increased its stake to 60%, driven by the success of its hybrid expansion. In June 2010, Toyota assumed a commanding 80.5% ownership stake, relegating Panasonic to a minority share of 19.5%. Toyota’s acquisition of a majority stake in the battery firm, announced on Tuesday, marks a significant step towards assuming full management control.
Toyota-affiliated firms, together with PEVE, Toyota Industries Corp, and Prime Planet Vitality & Options (Toyota 51%, Panasonic 49%), mass produce batteries for hybrids. Prime Planet also manufactures batteries for electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs), whereas PEVE will soon follow suit.
Toyota intends to continue collaborating with these companies to create and manufacture electric vehicle batteries at scale. The corporation is transitioning its focus to manufacture a diverse range of electric vehicle batteries on a large scale.
Toyota asserts that the move enables it to “respond nimbly to surging battery demand,” while simultaneously positioning its electric vehicles for increased competitiveness through enhanced efficiency and range capabilities.
As Toyota looks to expand its electric vehicle offerings, it’s announced plans to begin mass producing EV batteries at a new facility in Japan.
After unveiling a groundbreaking technological innovation in June, Toyota announced a significant acceleration of its electric vehicle (EV) battery development plans.
Toyota unveiled its comprehensive electric vehicle (EV) battery roadmap 12 months ago, featuring a diverse range of technologies. Scheduled for release in 2026, the innovative battery technology is expected to deliver an impressive range of nearly 500 miles (approximately 800 kilometers) on a single charge, as certified by the Worldwide Harmonized Light Vehicle Test Procedure (WLTP). Additionally, it will reportedly feature rapid recharge capabilities, allowing for a full top-up in just 20 minutes.
Toyota’s only global electric vehicle, the bZ4X, boasts an impressive estimated range of up to 252 miles on a single charge, according to the Environmental Protection Agency (EPA), or 310 miles under the World Light-Duty Test Procedure (WLTP).
The automotive manufacturer intends to introduce a dual-pronged approach by launching two distinct variants of its upcoming electric vehicle battery technology. The Toyota bZ4X, boasting an estimated efficiency that enables a WLTP-certified range of nearly 500 miles (800 km), is also notable for its rapid charging capabilities, with refills taking just 20 minutes to reach 80% capacity at a cost roughly 20% lower than comparable options. The primary model of a new technology is scheduled to debut in 2026, marking a significant milestone in its development.
The new model employs the popularised electric vehicle technology, boasting an impressive WLTP-certified range of over 372 miles (600 km). It also features rapid charging capabilities, with a 30-minute fast recharge at a significantly lower cost – 40% less than its current equivalent. The new model is expected to launch between late 2026 and early 2027.
By 2027 or 2028, Toyota plans to introduce a high-performance electric vehicle battery capable of delivering over 621 miles (1,000 kilometers) on a single charge under the Worldwide Harmonized Light Vehicle Test Procedure (WLTP). The device will feature 20-minute rapid charging capabilities at a 10% lower cost than its next-generation battery counterparts.
Toyota has long touted plans to debut solid-state electric vehicle (EV) batteries, a technological leap that could revolutionize the industry. The corporation has reaffirmed its intention to release advanced solid-state electric vehicle batteries by the end of last year, boasting an estimated range of up to 750 miles (1,200 kilometers) according to the World Driving Cycle protocol, seemingly in a bid to rival Tesla’s capabilities. Despite this, Toyota anticipates production constraints continuing well into the next decade.
Electrek’s Take
After a prolonged development period, Toyota is poised to unveil its latest electric vehicle battery innovations. Its long-promised solid-state EV batteries were initially slated for release in 2021, later rescheduled for 2022. It appears that widespread adoption of mass manufacturing won’t occur until at least 2030.
The automaker has sold over 100,000 electric vehicles for the first time last year, although this still accounts for less than 1% of the more than 11.2 million cars sold overall?
Meanwhile, even rivals like Volkswagen managed to sell 394,000 fully electric vehicles last year, which accounted for a notable 8% of their total sales volume. That’s a stark decline. Automakers have been making significant strides in electric vehicle (EV) sales, with many achieving double-digit percentages or even surpassing 100%.
Toyota is committed to realizing its hybrid sales goals, encompassing a range of eco-friendly vehicles, including hybrids, plug-in hybrids, electric vehicles, and fuel cell electric vehicles. As others accelerate their investments in fully electric technology, a pause for Toyota’s hybrid-focused strategy may put the brand further behind the curve.
While Toyota’s CEO projects that electric vehicles (EVs) will comprise a significant portion of US new auto sales by 2030, anticipating they will make up approximately 30% of the market in that year. The automaker claimed to be better situated to secure financing at reasonable rates rather than “squandering” funds on electric vehicles.
