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Toyota plans to keep pace with Tesla in developing and reducing the cost of traction batteries
In the early stages of Tesla’s formation, the Japanese corporation Toyota Motor was a shareholder of its future competitor, and now it is forced to catch up with Elon Musk’s brainchild in the production of traction batteries. The Japanese auto giant has a common partner with Tesla, Panasonic, which supplies various types of batteries to both automakers.
Image source: Panasonic
Toyota gets prismatic battery cells, while Tesla gets cylindrical. In this sense, everything is simple, and Toyota and Panasonic also have an independent joint venture, it is called Prime Planet Energy & Solutions. His Japanese companies created in April, combining their core assets. Prime Planet is now the world’s largest supplier of traction batteries for hybrid vehicles. Toyota recently set a goal of 50% of its new product sales by electrified vehicles by 2025, so the joint venture will need to improve battery technology at a rapid pace.
In the global market for high-capacity traction batteries, which also takes into account the needs of “purebred” electric vehicles, and not just hybrids, Prime Planet still holds no more than 3%, yielding to Chinese competitors. The same Chinese CATL, which is also Tesla’s supplier, accounts for more than 20% of the market. According to the head of Prime Planet Hiroaki Koda, the company now faces the task of standardizing the range of produced batteries and optimizing the supply chain of materials required for their production.
With a tenfold increase in production efficiency, Prime Planet finds it possible to outperform Chinese competitors. Already in the next generation of traction batteries, which are currently under development, production efficiency indicators will be increased five or six times. Tesla’s plans to cut the cost of battery production by half in a few years do not bother representatives of the company. Similar goals are achievable for the “court” manufacturer Toyota, according to representatives of Prime Planet.