Large scale consolidation in the electric vehicle segment continues unabated, with two of the largest corporates in the world — Toyota Motor Corp and Panasonic Corp — agreeing to launch a new joint venture which will specialise in the manufacture of prismatic batteries for automobiles. The decision comes just over a year after the two companies announced signing a business integration contract and a joint-venture contract toward the establishment of a new company.
Both have been collaborating on battery research since as early as 1996 when they created Primearth EV Energy, a JV to manufacture hybrid batteries. “The joint venture announced by Toyota and Panasonic will develop highly competitive, cost-effective batteries that are safe and feature excellent quality and performance (in terms of capacity, output, durability), enabling use with peace of mind by all customers. Furthermore, the joint venture will supply batteries not only to Toyota but also, broadly and stably, to all customers,” the companies said in a joint statement.
The JV, which will be called Prime Planet Energy & Solutions, Inc is expected to provide a critical product for the evolving global electric vehicle ecosystem, with batteries forming a large portion of any electric vehicle’s total production cost.“The joint venture’s name embraces Toyota’s and Panasonic’s strong determination to provide their customers while working in unison with many friends to keep our irreplaceable earth-abundant and clean broad-ranging, added-value solutions including and beyond the supply of energy in the form of batteries,” the companies said.
As per the latest statement, Toyota will hold 51 per cent in the new company while Panasonic will hold 49 per cent. The two companies have already emerged as major players in the nascent segment, with Panasonic having secured the contract to exclusively supply cylindrical batteries for the biggest name in EVs: US-based Tesla Inc.
However, the firm has been eyeing an expansion in its client profile through the development of prismatic batteries, which are more widely used in the industry. Tesla has also announced last month that it would expand its battery vendors list to include South Korea’s LG Chem Ltd and China’s CATL. Toyota, meanwhile, is aiming to develop its EV sales to comprise 50 per cent of its overall sales by 2025.
How it will work
The core business of the company will be the development, manufacture, and sales of high-capacity and high-output automotive prismatic lithium-ion batteries, automotive solid-state batteries based on new technology.