Panasonic and Toyota are both not newbies to EV batteries production, however, signing up together in a new partnership deal is a step further to achieving their EV goals
Both tech companies have had quite a successful trade year in the last decades, however, sticking to a single idea is counter-productive, the reason why both tech giant has decided to match up in a partnership deal towards acquiring a different goal entirely; the electric vehicle battery production, which poses to be the next biggest thing in the automobile tech industry.
Toyota and Panasonic have both had an insight into electric car batteries before, but they’re now poised to get particularly cozy. A source familiar with both source claimed that the two will set up a joint venture for manufacturing EV batteries sometime in 2020. Reportedly, they intend to reduce the costs of the power packs through sheer economies of scale and would supply both Toyota’s Daihatsu brand as well as outside companies like Mazda and Subaru. They’re also hoping to court Honda as it dives into EVs, according to the sources.
The new deal will have Toyota holding up to 51 percent (51%) of the total stake in the new partnership, while Panasonic would transition five of its car battery production plants in China and Japan to the new company. This wouldn’t affect Panasonic’s existing arranging with Tesla-its biggest partner so far, the tipsters said. If the report is accurate, Toyota and Pansonic would unveil their deal “as soon as this week.” or in the coming week, but definitely not anytime far away from now.
If you are wondering why both companies have teamed up together, then I can say it is because of the strong incentives the both have, maybe in my own opinion; Toyota has been comparatively slow to get started in EVs, and only recently started ramping up its plans. Furthermore, this could help it catch up in style by ensuring that it has access to affordable, mass-produced batteries. For Panasonic, meanwhile, this is mostly about cornering the market, which seem to be its own major priority. Having both Toyota and Panasonic on a part of the EV train and Tesla on the other pact is, of course, a dominant force in the EV world.