19. July 2019 by Kyle Field
BYD and Toyota announced this morning that the two industries have entered into an agreement that will see them participate in the development of batteries for electric vehicles. The batteries lay the foundation for an electrified future for both companies, as the agreement includes provisions for the partner for the development of sedans and low-lying floor SUVs.
The new set of vehicles will be manufactured under the Toyota brand especially for the Chinese market in the early 2020s. On paper, BYD and Toyota are competitors, but the climate change crisis is a common enemy and brought the two companies together to find a deal to develop mutually beneficial battery technologies and cars.
The move is the latest in a series of news from Toyota that shows how Toyota puts the helm of its business away from internal combustion engines against battery-powered vehicles. To get into the battery's electric car racing, Toyota went to one of the world leaders in both battery technology and plug-in cars: BYD.
BYD founder Wang Chuanfu and his team built BYD from scratch as an energy storage solution and consumer electronics manufacturing partner, and later into the automotive industry. His vision for a new energy economy built the company up to what it is today, world leader in plug-in vehicle sales.
Just last month, Toyota took out plans to collaborate on a new Subaru chassis specifically for electric vehicles called e-TNGA, or the electric Toyota New Global Architecture. It is the new flexible platform for electric vehicles manufactured by the two companies, and can be stretched or shrunk to suit different vehicle types.
So last week, Toyota took into the real electric vehicle game and the ink a battery supply deal with the Chinese battery behemoth CATL. The new deal gives Toyota the electrified line of battery credit, so desperately needed to make a serious move in the electric vehicle.
Toyota has set a public target of selling a full 50% of its cars as electrified cars by 2025. The fuzzy use of "electrified" allows the company to count its traditional non-plug-in, fossil-fueled "self-loading" hybrids in the number. Boiled it down to hard numbers, Toyota hopes to achieve 15% of its sales from fully electric vehicles on its new e-TNGA platform by 2030.
In Toyota 2018, Toyota produced 8,885,533 million vehicles, so the 2020 target translates into a plan to sell 1.3 million battery electric cars in 2030. Tesla is on track to achieve a similar achievement in 2021.
Featured image of Kyle Field |