Connect with us

Hi, what are you looking for?



Toyota & Panasonic Joint Venture Plans To Cut Battery Costs By 50%

The joint venture between Toyota and Panasonic will soon be able of producing enough batteries for 80,000 electric cars. That’s not nearly enough.

In 2020, Toyota and Panasonic formed a joint venture called Prime Planet Energy & Solutions to manufacture advanced lithium-ion prismatic batteries. Toyota controls 51% of the joint venture and Panasonic controls 49%. Last week, PPES said in a statement it expects to lower the cost of batteries by 50% by the end of next year, according to Inside EVs.

The statement did not say how that 50% reduction in cost will be calculated. Is it 50% less than the current cost of manufacturing Panasonic batteries? 50% less than Tesla’s cost of batteries? 50% less than CATL or Samsung or SK Innovation? And how exactly will costs be lowered? The announcement from PPES glosses over those important details. The company has created a helpful YouTube video that paints a glowing picture of the future of mobility. It is chock full of pleasing graphics, easy platitudes, and empty promises.

PPES is led by Hiroaki Koda — a former executive at Toyota — who says the long term goal is reduce costs by as much as 70% by 2025. According to Bloomberg, about 60% of the prismatic lithium-ion battery cost is related to resources like lithium and cobalt, while the remaining 40% falls on development, production and investments. The joint venture is hard at work trying to improve the batteries for electric transportation. “It’s a competitive world,” Koda says. “There’s a certain price level necessary for EVs to spread. If we don’t meet that, we won’t sell.”

The original focus of Prime Planet Energy & Solutions was on making batteries for hybrids, which Toyota likes to call “self charging electric cars.” At present, it has 25% of the global battery market for hybrids. But the focus is now shifting to battery electric cars.

PPES is installing manufacturing lines for prismatic lithium-ion batteries for electric vehicles at its existing domestic facilities in Himeji, Japan. Now here’s where things get interesting. The planned output of the new production line site will be enough to power 80,000 battery electric cars annually.

By contrast, Toyota intends to ramp up production of batteries at its factory in Dalian, China to supply 400,000 hybrid and plug-in hybrid cars annually. In total it will soon have enough batteries for nearly 2 million hybrid cars a year. Let’s see. 80,000 battery electrics versus two million hybrids and plug-in hybrids. Those numbers alone tell you all you need to know about Toyota’s commitment to the EV revolution.

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
If you like what we do and want to support us, please chip in a bit monthly via PayPal or Patreon to help our team do what we do! Thank you!
Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Written By

Steve writes about the interface between technology and sustainability from his home in Florida or anywhere else The Force may lead him. He is proud to be "woke" and doesn't really give a damn why the glass broke. He believes passionately in what Socrates said 3000 years ago: "The secret to change is to focus all of your energy not on fighting the old but on building the new."


You May Also Like

Clean Power

The Fukushima prefecture has been a ghost town since late 2011. Though the levels of radiation have gone down to more than acceptable levels,...


The bZ3 is a battery-electric sedan jointly developed for the Chinese market by BYD TOYOTA EV TECHNOLOGY CO., LTD. BTET is a joint venture...


Driving refinement, exhilarating performance, more environmental consciousness, and even cooler colors are promises of Toyota’s all-new Prius PHEV, the Z-Grade. The additional model adds...


Redwood Materials reports that after the first year of operation, its battery recycling facility in California has been a success.

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.