Toyota ties up with Chinese battery producers

Japanese auto producer Toyota Motor has agreed to work with Chinese battery producers CATL and BYD to secure stable supplies of batteries to meet growing demand for electric vehicles (EVs).

Full details on the tie-up with the Chinese firms were undisclosed. But Toyota said it is important to ensure stable supplies and improve the durability of batteries, while setting up technology to reuse used batteries.

Toyota plans to expand its sales of EVs, including hybrid EVs, plug-in hybrid EVs, fuel cell EVs as well as 100pc EVs to 5.5mn by 2025, five years earlier than the previous target date of 2030. The 5.5mn target accounts for around 50pc of its entire car sales estimated for the year. It sold 1.6mn EVs in 2018, higher by 7pc compared with 1.5mn in 2017.

Toyota's demand for batteries used for EVs are projected to increase by around 20 times in 2025 compared with unspecified 2018 levels, the company said.

The company has also agreed with Japanese battery producers Toshiba and GS Yuasa to co-operate on battery business, following partnerships with Japan's Panasonic and Primearth EV Energy.

Japan's imports of metals associated with EV battery production are rising rapidly. It imported 10,624t of lithium carbonate equivalent during January-April, up by 64pc from the same period in 2018, according to finance ministry data. It also received 12,211t of lithium hydroxide and 25t of lithium metal equivalent during the period, up by 70.4pc and down by 25pc respectively.