Toyota and Panasonic sign joint venture agreement for automotive batteries

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Toyota Motor Corporation and Panasonic Corporation have concluded a business integration contract and a joint venture contract towards the establishment of a new company (joint venture) related to the automotive prismatic battery business. Toyota and Panasonic will establish the joint venture by the end of 2020.

The ratio of equity participation in the joint venture will be 51% for Toyota and 49% for Panasonic.

The scope of the joint venture’s business operations will cover research, development, production, engineering, manufacturing, procurement, order receipt and management related to automotive prismatic lithium-ion batteries, solid state batteries and next generation batteries.

Toyota will transfer equipment and personnel to the joint venture in the areas of development and production engineering related to battery cells. Panasonic will transfer equipment, other assets, liabilities, personnel and other items to the joint venture in the areas of development, production engineering, manufacturing (at plants in Japan and Dalian, China), procurement, order receipt and management functions related to the automotive prismatic battery business.

Products produced by the joint venture will be sold to various automakers through, in principle, Panasonic.

In addition to changing consumer needs for the automobile, as evidenced by shifts towards connected vehicles, autonomous driving and car-sharing services, today’s automotive world is also being called on by society to help find solutions to issues such as those related to global warming, resources and energy. Batteries are a most-important element as vehicle electrification accelerates towards the solving of such environmental issues.

Toyota and Panasonic are confident that the contracts concluded today will further strengthen and accelerate their actions towards producing competitive batteries.

Toyota Executive Vice President Shigeki Terashi said: “Together with Panasonic, we want to hone our competitiveness in batteries, one of the core technologies of electrified vehicles. By contributing to the popularisation of Toyota’s and other auto makers’ electrified vehicles, we want to help find solutions to issues such as global warming and environment and energy-related challenges.

“We have high expectations for the new company, including – as we aim to deliver ever-better electrified vehicles to even more customers – its role in fulfilling our plans for the popularisation of electrified vehicles (including achieving Toyota annual global sales of more than 5.5 million electrified vehicles) which we announced at the end of 2017*.”

Panasonic Senior Managing Executive Officer Masahisa Shibata said: “Uniting with Toyota’s battery and production engineering technologies provides us with an excellent opportunity to be able to evolve faster than ever our automotive prismatic batteries, which have an established track record of performance and safety. Through the electrification of vehicles, we want to accelerate our contribution to the realisation of a mobility society that is kind to the environment.”