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Toyota Motor Corporation (NYSE: Chart TM - $136.65 0.78 (0.574%) ) plans to spend $13.7 billion by 2030 on the development of next-gen batteries and production tooling as part of its push to capture a bigger share of the growing electric vehicle market.
On Tuesday, the Japanese automaker said it is working on technology to mass produce solid-state batteries, which Toyota believes will help spur EV production because they are more energy dense, charge faster and are less prone to catching fire than current technology.
“By establishing both development and supply systems, we will promote the spread of electric vehicles, including BEVs [battery electric vehicles],” Toyota’s chief technology officer Masahiko Maeda said. “We focus on safety, longevity and high quality, and manufacture high quality, low cost and high-performance batteries. Toyota places the highest priority on batteries that customers can use with peace of mind.”
As part of the investment, Toyota will look to set up 70 EV battery lines by 2030 and is aiming to secure 200 gigawatt hours (GWh) of battery supply by then, up from its previous goal of 180 GWh.
It also wants to cut the cost of its batteries by at least 30%, primarily by using lower cost materials and a more efficient method of structuring battery cells.
Maeda said the company adjusted its objectives based on the potential of battery EVs “spreading quicker than expected.”
“Zero-emissions vehicles are important in regions where renewable energy is widely adopted,” Maeda said, adding, that Toyota is “preparing a full lineup of CO2 emission-reducing vehicles.”
By 2030, Toyota aims to sell 8 million partially or fully electrified vehicles. According to the carmaker, 2 million of those vehicles will be powered entirely by fuel cells or batteries, and the other 6 million will be plug-in hybrids or gasoline-electric hybrids.
Toyota, an early pioneer in electric cars, has since fallen behind competitors in the race to bring more EVs to market and has faced criticism that it has been slow to adapt to the changing industry.
Earlier this year, the company unveiled a plan that calls for 15 new battery-electric vehicles to be released by 2025.
In total, Toyota said it would launch 70 new models, including battery-electric, hydrogen fuel cell and gas-electric.
Toyota’s new goal of 200 GWh still falls short of some rival automakers’ output goals, particularly those of Ford Motor Company and Volkswagen, both of which aim to lock down 240 GWh in battery supply by 2030.
Source: Equities News