Toyota and Panasonic's battery joint venture PPES plans to significantly increase production capacity

Introduction: According to media reports, Toyota and Panasonic's battery joint venture Prime Planet Energy & Solutions (PPES) is expanding its production capacity. Starting this month, a third plant will be built at the existing plant in Dalian to produce batteries for hybrid vehicles.

In 2020, Toyota and Panasonic established a battery joint venture, Prime Planet Energy & Solutions (PPES), in China, taking steps to standardize battery design and help material suppliers streamline operations.

PPES has reportedly now started construction of a third plant in Dalian, which will produce batteries for around 400,000 hybrid vehicles per year.

In addition, the production base in Tokushima Prefecture, Japan will increase the annual production capacity for hybrid vehicles by approximately 500,000 vehicles, and the production base in Hyogo Prefecture will increase the annual production capacity for pure electric vehicles by 80,000 vehicles. In order to cope with the rapidly growing demand, PPES is vigorously expanding production.

Toyota concretized its electrification plan in December 2021, promising to launch 30 BEV models in the passenger and commercial vehicle sectors for the Toyota and Lexus brands worldwide by 2030. A study of 15 electric vehicles for each brand was also presented at the time, and more relevant information has been gradually released since then.

"We hope to be able to supply most of the batteries Toyota needs to achieve its electric vehicle sales targets," said Hiroaki Koda, president and CEO of PPES. However, he left open the possibility of when PPES will start producing more batteries for the upcoming BEV models.

PPES, which specializes in producing square-shaped batteries, aims to reduce the cost of batteries by 65% ​​to 70% by 2025.