Toyota will enter into a partnership with a Chinese company, CATL, in order to develop EV batteries. This move will support Toyota in its goal to move half of its sales to electric vehicles by the year 2025. CATL is a prominent organization in the EV battery industry. CATL already has supply deals with other auto manufacturing companies like Honda and Volvo. Toyota released a statement saying that a supply of batteries is critical to electric vehicle production and the pair will work on further developing technology and Toyota says the two companies will "Establish joint systems and engage in specific initiatives together."
Toyota has made other moves in the electric vehicle industry including co-developing vehicles with BYD that will hit the market by 2020.
Image Credit: Toyota/ CATL
Why This Trend Is Growing
- Electric Vehicle Battery Partnerships
- Partnerships between EV manufacturers and battery suppliers will lead to technological innovation and efficient production processes.
- Co-development of Electric Vehicles
- Collaborative efforts between automakers will lead to the creation of innovative and marketable EVs.
- Increased Adoption of Electric Vehicles
- As more manufacturers invest in EV technology, adoption rates will increase, creating new opportunities in the electric vehicle industry.
Industries Being Reshaped
- Electric Vehicle Battery Manufacturing
- The growing demand for EV batteries presents an opportunity for manufacturers to invest in research and development to improve battery technology and increase supply.
- Automotive Manufacturing
- As the demand for EVs increases, automakers that embrace the shift to battery-powered vehicles will thrive in the new market.
- Renewable Energy
- As electric vehicles become increasingly popular, the demand for renewable energy sources to power them will rise, presenting opportunities for renewable energy companies.
