Toyota plans to invest 13.6 billion yen ($13.6 billion) by 2030 in the development of new batteries. As the segment of electric vehicles grows, the Japanese manufacturer aims to increase its market share.
Toyota is seeking to develop lithium-ion batteries that are not only less expensive (without cobalt and nickel), but also more compact, longer-lasting and with higher energy density.
The Japanese giant plans to develop its vehicles and batteries in an integrated manner, in order to aim for a 50% reduction in production costs per vehicle by 2030, according to a group presentation.
Aiming for carbon neutrality by 2050 (and starting as early as 2035 for its factories), Toyota is also working to develop a virtuous battery life cycle, which is supposed to be recycled after use.
As a pioneer and world champion of hybrid vehicles, the group is now focusing its efforts on 100% electric vehicles, which are becoming a major trend in the global automotive market.
Toyota announced its intention to launch 15 battery-electric models by 2025, marking its first foray into the segment.
In contrast, Toyota continues to invest heavily in hybrids and hydrogen vehicles in parallel, even as its biggest global rival, Volkswagen, is announcing even larger investments in all-electrics.
The company plans to sell eight million “electrified” vehicles (global category including hybrids) by 2030, four times more than in 2020. Only 2 million of the total units are planned to run on 100% batteries or hydrogen.
Last month, Toyota reportedly sold 144,800 vehicles, down 11.9% from the previous year, as the global chip shortage strongly hit vehicle production.
The company expects electric vehicles to account for 100 percent of its sales in Europe, 95% in Japan, and 70% in North America by 2030, while it hopes to reach 100 percent in China by 2035.