Toyota and Panasonic have already explored the ability to build batteries for electric vehicles, but apparently, in the future, they will join forces in these efforts. According to Nikkei’s Asian Review, these two companies plan to join together in their development and production in 2020.
This would allow them to reduce the price, and would supply the Toyota Daihatsu brand, as well as other companies such as Mazda and Subaru. They also hope to provide another Japanese client – Hondo, when she starts manufacturing electric vehicles. Toyota will control 51% of the shares in this association, while Panasonic will transfer to its new company five of its plants for the production of automotive batteries located in China and Japan. This will not affect the existing arrangement of Panasonic with Tesla.
Otherwise, both companies have good reasons for joining. Toyota is late with the development of electric vehicles, so this partnership would allow it to speed up the pace and gain access to affordable batteries ready for mass production.
For Panasonic, on the other hand, this means expanding the market, along with the partnership already with Tesla, would enable it to become the dominant company when it comes to battery production for the automotive industry. If the reports are correct, Panasonic and Toyota could formally announce this partnership for the next day.