Toyota eyes mass production of diverse EV batteries; Plans to acquire PEVE soon

Japanese automotive giant, Toyota Motor Corp. (TMC), has agreed with Panasonic Holdings Corp. (Panasonic HD) to make Primearth EV Energy Co, Ltd (PEVE), a wholly owned subsidiary to bolster Toyota's capabilities in mass-producing electric vehicle batteries.

Currently, PEVE, Toyota Industries Corporation, and Prime Planet Energy & Solutions are among the Toyota-affiliated companies that mass produce batteries for hybrid electric vehicles (HEVs) with the latter also making batteries for battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEVs).

"Toyota will continue collaborating with these companies in battery mass production and development," TMC said in an official release.

In addition to HEV batteries, PEVE will start producing batteries for BEVs and PHEVs.

"The company's shift into mass-producing a wide variety of electric vehicle batteries will enable Toyota to respond flexibly to growing battery demand, while also helping to further boost mass-production competitiveness," the automaker added.

The acquisition is scheduled to take place by the end of this month (March 2024).

Global Demand Outlook 2030

Reports indicate the global demand for Li-ion batteries is expected to soar over the next decade, increasing from ~700 GWh in 2022 to around 4.7 TWh by 2030. Furthermore, batteries used for mobility applications such as EVs, will account for the vast bulk of demand in 2030—about 4,300 GWh.