Toyota and Panasonic will launch a joint venture in 2020 to produce batteries for electric vehicles as the automaker responds to Chinese rivals.
The partnership will see Toyota have a majority share (51%) and allow Panasonic to provide batteries for the Japanese automaker’s EV partners such as Mazda and Subaru.
When officially announced later this week, the deal will help Toyota achieve its annual sales target of one millions zero-emission battery EVs (BEVs) and fuel-cell vehicles by 2030.
Panasonic will not only benefit from improved cost and scale of its battery production, but also provide a safety net for production delays with US automaker Tesla, which has affected the company’s earnings in the past. However, it will still produce batteries for the Californian brand under the new joint venture.