Toyota and Panasonic have announced that they are considering jointly developing batteries for electric vehicles (EVs), a partnership that could help Panasonic extend its market lead in automotive lithium-ion batteries.
This agreement between the two companies aims to help find solutions to pressing societal issues such as global warming, air pollution, the depletion of natural resources and energy security. Furthermore, this agreement is intended to address growing demand and expectations for electrified vehicles. In order to realize these objectives, Toyota and Panasonic target further advancements in automotive batteries, which are crucial technologies in electrified vehicles.
Panasonic is the main EV battery supplier for Elon Musk’s Tesla. The electronics firm commands 29 percent of the market for batteries used in plug-in hybrids and EVs, according to Nomura Research data for the first half of 2017.
Panasonic’s nearest rival LG Chem holds 13 percent of the market, followed by China’s BYD on 10 percent and Contemporary Amperex Technology Co Ltd (CATL) at 9 percent.
Our cylindrical batteries are the most widely used batteries in pure EVs at the moment,” said Panasonic President Kazuhiro Tsuga. “But when you look at the future, it’s difficult to gauge which format holds more demand potential.”
“We need to be able to develop new battery technologies in a prismatic format, and this would be difficult on our own.”