Toyota's Development and Supply of Batteries: Investing JPY 1.5 trillion by 2030

From media briefing & investors briefing on batteries and carbon neutrality

2021/10/01

Summary
Expanding the choice of electric vehicles and creating a full lineup with the aim of becoming carbon neutral
Development of a full lineup of batteries, and the "bipolar" nickel-metal hydride (NiMH) battery in the new Aqua
Toyota's battery development concept: Developing batteries that can be used with peace of mind
Future battery development: Significant cost reduction and the development of next-generation lithium-ion batteries
All-solid-state batteries: Commercialization in the first half of the 2020s, scheduled to be rolled out in HEVs
Battery procurement and collaboration structure
Q&A session after the presentation

Summary

A prototype vehicle equipped with all-solid-state batteries has been built and is being tested. (Source: Toyota)

In September 2021, Toyota held a briefing for the media and investors entitled "Towards Carbon Neutral: Toyota's Development and Supply of Batteries". Toyota's three core technologies for electric vehicles are "motor," "battery," and "power control unit". At this briefing session, Toyota explained the unique concept and competitiveness of the "battery" that it has cultivated through the production of electrified vehicles.

Toyota plans to sell 8 million electric vehicles globally in 2030, including 2 million "BEV + FCEV” (Battery Electric Vehicle + Fuel Cell Electric Vehicle). To achieve this, the company has determined that it will need to produce more than 200GWh of batteries by 2030, and plans to invest JPY 1 trillion in production and supply, as well as JPY 500 billion in development, for a total of JPY 1.5 trillion (cumulative).

Toyota plans to have a full lineup of electric vehicles, and will also build a full lineup of batteries. The new Aqua released in July 2021 is equipped with a new high-output bipolar nickel-metal hydride (NiMH) battery as an electric drive battery.

As the next generation of lithium-ion batteries, all-solid-state batteries will be put to practical use in the first half of the 2020s and will be installed in HEVs (Hybrid Electric Vehicles) first. In the second half of the 2020s, Toyota will introduce rectangular batteries with advanced materials and new structures in liquid batteries.

The company also plans to significantly reduce the cost of batteries. The cost of the batteries used in the “bZ4X” EV to be launched in 2022 will be reduced by 40% from the batteries used in the C-HR/IZOA/UX vehicle launched last year. In addition, regarding the cost of batteries to be introduced in the second half of the 2020s, Toyota is planning to reduce the cost per unit by 50% from that of the “bZ4X”.

Toyota emphasized the merits of the company's integrated development of vehicles and batteries. The company has a wealth of data about cars that can be analyzed to determine how design at the vehicle level affects the operation of batteries to improve them and reduce their cost. Also, in vehicle development, power consumption is reduced by reducing weight and resistance, which contributes to cost reduction by reducing battery volume. Toyota's strength lies in the fact that it is making such steady efforts.

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