Toyota to Invest $17 Billion in EV Batteries

Part supplies are by far one of the top concerns in the auto industry right now and Toyota wants to do something about it.

The Japanese automaker said in a presentation on Tuesday that it plans to pour 1.5 trillion yen (approximately $17.2 billion CAD) into the development and supply of batteries for electric vehicles. It also aims to cut battery costs by half per vehicle by 2030.

• Also: Toyota Plans to Unveil Solid-State Battery EV Prototype in 2021
• Also: Toyota Takes Big Step to Solve Hybrid Battery Shortage

Toyota talked about a new generation of lithium-ion batteries that don’t use any cobalt or nickel, are more compact in size, have higher energy density and last longer. They will be developed in a way they can be recycled or reused at the end of their life cycle, helping the company achieve its goal of full carbon neutrality by 2050.

While consumers are currently fighting for the precious few RAV4 Prime units available, Toyota is finally ready to complement its strong hybrid lineup with a number of all-electric models. The first of 15 to hit the market by 2025 will be a compact SUV based on the bZ4X concept that was shown last April (pictured here).

Toyota’s latest announcement may sound huge, but other manufacturers have pledged to spend even more money on batteries and associated technology. Volkswagen and BMW are two examples. The latter has just increased its investment to a little more than $30 billion through 2024.