Toyota: Developing electrification compatible engines with Mazda and Subaru

BEV production in the U.S. from 2025; enhancing battery production in Japan and the U.S.

2024/08/30

Summary
Toyota, Mazda, and Subaru to develop new engines compatible with electrification
Toyota's electrification plan and key themes for FY2024
Strengthening production organization for automotive batteries: PEVE becomes wholly owned subsidiary
Idemitsu Kosan, ENEOS, and Mitsubishi Heavy Industries to conduct research on carbon-neutral fuels
Toyota's consolidated financial results: Leveraging strong results to accelerate investment in human resources for the future and investment for growth
Sales Forecast by GlobalData: Toyota Group’s Sales expected to be 10.68 million units in 2027

Summary

Various technologies to achieve carbon neutrality (Source: Multipathway Workshop (Presentation by Toyota's CTO H. Nakajima))

Toyota is promoting carbon neutrality with its "Multipathway" initiative.

Toyota, Mazda, and Subaru announced in May 2024 that they will develop new engines compatible with electrification. With new engines, the goal is to optimize the combination with electric power units such as motors and batteries. In addition, the new engines will achieve carbon neutrality by being compatible with a variety of carbon-neutral fuels (CN fuels), including e-fuel (synthetic fuel), biofuel, and liquid hydrogen.

Toyota will develop a compact, high-efficiency, high-output engine based on the premise of electrification. Mazda plans to revive the rotary engine (RE) by utilizing electrification technology and its compatibility with CN fuels. Subaru will refine its "horizontally opposed engine + AWD" system with electrification technology, and will adopt a series-parallel configuration for its next-generation hybrid system.

In terms of Toyota's sales volume (Toyota and Lexus retail volume), electric vehicle sales are expected to increase over twofold, from 2,155,000 units (23.7% ) in FY2020 to 4,827,000 units (46.4%) in the FY2024 forecast, mainly HEVs.

Toyota will produce BEVs in the U.S. starting in 2025. The company has invested a total of USD 13.9 billion (just over JPY 2 trillion) in a battery plant in North Carolina, and in October 2023 it signed a contract to receive lithium-ion batteries from LG Energy Solution (LGES).

In order to strengthen its production organization for automotive batteries in Japan, Toyota will make Primearth EV Energy (PEVE) a wholly owned subsidiary and change PEVE's company name to "Toyota Battery Co., Ltd." from October 2024. It has also been reported that Toyota plans to build a new lithium-ion battery plant in Fukuoka Prefecture, which will begin operations after 2028 and supply batteries to Lexus vehicles produced at the Toyota Motor Kyushu Miyata Plant in the same prefecture.

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