According to Nikkei Asian Review, Toyota and Panasonic will set up a battery joint venture. Split 51% in Toyota’s favour, it will be announced later this week.
Panasonic will shift five battery production facilities in Japan and China to the new company. The venture will not affect its plant operated with Tesla in the US.
Toyota and Panasonic will begin mass production of batteries 50 times capacity of current hybrid units by 2020.Third party OEMS involved in supply will include Mazda, Daihatsu, Subaru and Honda.
Panasonic and Toyota will also develop next-generation EV batteries. Toyota committed to hybrid development in the early 2000s but it lags rivals in the development of full EVs.
For Panasonic, teaming with Toyota will help it save on investment costs and reach a broader network of customers, says the report.