Toyota, Panasonic form joint venture to build EV batteries

The companies want to supply prismatic batteries to the entire automotive industry.

Toyota and Panasonic have announced a joint venture that will focus on batteries used in hybrids and electric vehicles.

The business will be 51-percent owned by Toyota and focus on R&D, engineering, manufacturing and procurement of prismatic lithium-ion batteries, solid-state batteries and other next-generation energy storage technologies.

"As vehicle electrification accelerates toward the solving of such environmental issues, batteries are a most-important element," the companies said in a statement. "However, numerous battery-related challenges must be tackled, including not only having advanced technological capabilities to address issues of cost, energy density, charging time, and safety, but also being able to ensure stable supply capacity and having effective recycling structures."

Notably, Panasonic already has a manufacturing partnership with Tesla to build cylindrical lithium-ion cells at the Nevada Gigafactory. Many other automakers are still using prismatic (pouch) technology, however, and the Toyota-Panasonic joint venture aims to become the leader in battery development and manufacturing.

The joint venture will be officially formed in 2020 pending government approvals.