Toyota has announced an agreement with Panasonic Holdings Corporation (Panasonic HD) to acquire the remaining stake in Primearth EV Energy Co., Ltd. (PEVE) in order to make it a wholly owned subsidiary. This move is aimed at bolstering Toyota’s capabilities in mass-producing automotive batteries. The acquisition is scheduled to be completed by the end of March.
Currently, among Toyota-affiliated companies, PEVE, Toyota Industries Corporation, and Prime Planet Energy & Solutions, Inc. (owned 51% by Toyota and 49% by Panasonic HD) are involved in mass-producing batteries for hybrid electric vehicles (HEVs).
Prime Planet Energy & Solutions, Inc. also manufactures batteries for battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). Toyota will continue collaborating with these companies in battery mass production and development.
In addition to HEV batteries, PEVE plans to expand its production to include batteries for BEVs and PHEVs. This strategic shift will allow Toyota to respond flexibly to the growing demand for electric vehicle batteries, thereby enhancing its mass-production competitiveness.
The production of more competitive batteries is expected to enhance the appeal of Toyota’s electric vehicle offerings and contribute to the company’s goal of achieving carbon neutrality through a multi-pathway approach. PEVE currently employs approximately 4,700 individuals.
