Toyota to Invest $13.6bn on Next-Gen Batteries and Electric Vehicle Parts

The Japanese car manufacturer is hedging their bets on solid-state batteries, and plans to invest $13.6 billion on the development and factory plants for next-generation electric car batteries. 

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What is Happening? 

1. The world’s largest carmaker Toyota announced plans to spend USD$13.6 billion in electric car batteries and factory plants over the next decade in bid to sell more than two million electric vehicles per year by 2030. 

2. While the Japanese company has been winning the race in hybrid vehicles – which combine at least one electric motor with a gasoline engine to power the car – Toyota is eyeing to dominate the electric car market. 

3. Toyota is aiming to develop cheaper and longer-lasting electric vehicles with a partnership with Panasonic, and has said to be on track to develop next-generation solid-state batteries by 2025. 

4. A solid-state battery is a rechargeable energy storage system for electric vehicles. They tend to be lighter, have more energy density, offer more travel range, as well as recharge faster in comparison to lithium-ion batteries. However, Toyota is said to be concerned with the battery’s short lifespan. 

5. A plan for building a total of 70 manufacturing lines for EVs by 2030 is also currently underway. 

6. Other major car manufacturers have joined the race to expand their lines and transition to electric vehicles. German carmaker Volkswagen has recently invested $14bn for batteries with plans to build six battery factories across Europe by the end of the decade.  

7. In the US, President Biden signed an executive order in early August 2021 ordering 50% of all new American cars to be electric by 2030. This includes cars with electric batteries, plug-in hybrid electric and fuel cell electric vehicles.

8. While the executive order is non-binding, many of the biggest automotive companies and manufacturers have made voluntary commitments aligned with Biden’s electrification goal, such as Ford, General Motors and Stellantis. 

9. At the time, Toyota failed to set any specific electric car sale goals but had said in an official statement that they will “do [their] part.” The Japanese carmaker’s new investment in batteries indicates that they are finally making progress in their transition to electric vehicles and reducing emissions from fossil fuel-powered cars. 

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