Toyota and Panasonic to produce lithium-ion batteries for Japan hybrid cars

On Tuesday, Toyota Motor Corp (TYO:7203)  and Panasonic Corp (TYO: 6752) announced a joint company venture that would produce lithium-ion batteries for hybrid cars at a manufacturing plant located in Western Japan.

The firms stated that battery production would start in 2022 to meet the growing demand for electric vehicles (EV).

“The production line at a Panasonic factory in Tokushima prefecture will have enough capacity to build batteries for around 500,000 vehicles a year,” Prime Planet Energy & Solutions Inc. (PPES) said in a statement.

“The global electric vehicle market is expected to continue growing rapidly,” the firm added.

Prime Planet Energy was founded in April 2020 while it was 51% owned by Toyota Motor Corp with Panasonic Corp holding the remaining stake.

Last month, Toyota Motor Corp stated that it expects annual sales of electrified car units to reach 5.5 Million in the next five years.