Toyota has announced that it will acquire full ownership of Primearth EV Energy (PEVE), a joint venture with Panasonic that produces batteries for hybrid and electric vehicles. The deal, which is expected to close by the end of March, will allow Toyota to boost its battery production and competitiveness in the electric vehicle market.
Toyota aims to strengthen its battery mass-production capabilities
Toyota currently owns 80.5% of PEVE, while Panasonic holds the remaining 19.5%. PEVE, which was established in 1996, manufactures nickel-metal hydride (Ni-MH) and lithium-ion (Li-ion) battery packs for hybrid electric vehicles (HEVs) at its plants in Kosai and Taiwa, Japan. PEVE also plans to start producing batteries for battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) in the near future.
Toyota said that by making PEVE a wholly owned subsidiary, it will be able to strengthen its capabilities in mass-producing diverse and high-quality batteries for various types of electric vehicles. Toyota also said that the acquisition will help it to respond flexibly to the growing demand for batteries, and to enhance its innovation and differentiation in battery technology and performance.
Toyota collaborates with Panasonic and other partners in battery development and production
Toyota’s acquisition of PEVE does not mean that it will stop collaborating with Panasonic and other partners in battery development and production. Toyota said that it will continue to work with Panasonic, Toyota Industries, and Prime Planet Energy & Solutions, a joint venture between Toyota and Panasonic that also makes batteries for electric vehicles. Toyota said that it values the expertise and resources of its partners, and that it aims to create a collaborative and competitive ecosystem for battery production.
Toyota also said that it will leverage its battery production capabilities to support its vision of carbon neutrality and electrification. Toyota has set a goal of selling 5.5 million electrified vehicles, including 1 million zero-emission vehicles, by 2025. Toyota has also pledged to reduce its carbon emissions to zero by 2050, and to offer a diverse range of electric vehicle options to its customers.
PEVE will be led by Shigeki Terashi, a senior executive at Toyota
PEVE will be led by Shigeki Terashi, who will serve as the president and CEO of the company after the acquisition. Terashi is currently a senior executive at Toyota, and is in charge of the company’s advanced R&D and engineering, as well as its battery strategy and business. Terashi has been involved in PEVE since its inception, and has a deep knowledge and experience in battery development and production.
Terashi said that he is honored and excited to lead PEVE, and that he will strive to make the company a global leader in battery production. He also said that he will work closely with Toyota and its partners to deliver high-quality and affordable batteries to the market, and to contribute to the electrification and decarbonization of the automotive industry.
