Toyota and Panasonic will reduce the cost of batteries by 50%

Toyota and Panasonic will reduce the cost of batteries by 50%


Major Japanese companies Toyota and Panasonic announced that they will jointly reduce the cost of batteries by 50 percent. This will help reduce the cost of hybrid and electric vehicles to compete successfully with similar Korean and Chinese models.

It is worth recalling that Toyota and Panasonic have a joint venture in which the Japanese automaker owns 51% and the engineering corporation 49%. On the basis of it, it is planned to produce new lithium-ion batteries.

Interestingly, it is planned to reduce the cost of battery production next year. And by 2025, an even more ambitious goal is set – to reduce costs by 65-70 percent. However, many experts doubt the possibility of such abbreviations.

As it became known to the Western media, the JV spends most of its costs (about 60%) on raw materials. That is, for lithium and cobalt, which is growing in price due to the increasing popularity of electric vehicles. The remainder comes from development, production and investment in existing plants. Strictly speaking, companies have very little room for optimization.

Nevertheless, the Japanese are still optimistic. In 2020, the joint venture was able to release almost one and a half million batteries, despite certain difficulties associated with the pandemic. Moreover, it is planned to install new production lines at the factories in Himeji. In the first year, they will provide an additional 80 thousand units of batteries with the prospect of increasing.

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