Toyota issued a press release on the 5th stating that it would acquire Panasonic’s shares in Primearth EV Energy, a joint venture between the two parties, to increase battery production for electric vehicles.
Primearth EV Energy was founded in 1996 as Panasonic EV Energy and was initially owned 60% by Panasonic and 40% by Toyota. After Toyota increased its shareholding ratio twice, the company changed its current name in 2010 (Note: Therefore, the abbreviation has always been PEVE). Toyota currently holds 80.5% of the shares and Panasonic holds 19.5%.
▲ Primearth EV Energy corporate photo
Toyota said the share acquisition aims to strengthen its mass production capabilities for various types of automotive batteries and flexibly respond to growing battery demand. The parties did not disclose the transaction price.
Primearth EV Energy currently produces batteries for hybrid electric vehicles (HEV), and Toyota plans to expand the business into batteries for plug-in hybrid vehicles (PHEV) and battery electric vehicles (BEV) after the acquisition is completed.
▲ Primearth EV Energy logo
Previously, Toyota-related companies include Toyota Autoloom Co., Ltd. and Prime Planet Energy & Solutions, which produce vehicle batteries on a large scale. The latter is owned by Toyota and Panasonic with 51% and 49% shares respectively. It also produces HEV, PHEV, Batteries for BEVs. Toyota said it will continue to cooperate with the two companies in battery development and mass production.
According to Nikkei, Toyota plans to increase battery production capacity to 280GWh by 2030 from 6GWh in 2021.
