Toyota and Panasonic can make up for creating EV batteries

Toyota wanted a controlling 51 percent stake, while Panasonic was to transfer five of China's and Japan's car manufacturing plants to the new company. This would not affect Panasonic's existing deals with Tesla, tipsters said. If the report is accurate, Toyota and Pansonic will reveal their deal "as soon as this week."

Each site has strong incentives to gather. Toyota has been relatively slow to get started in electrical and electronic components, and only recently began to ramp up its plans. This can help to come into style by making sure it has access to affordable, mass-produced batteries. For Panasonic, it is mainly about swinging the market. Between this and the Tesla Pact, it can become a dominant force in the EV world.