Toyota, the Japanese automotive giant, has revealed its ambitious plans to enhance the driving range and reduce costs of future electric vehicles (EVs) through the introduction of high-performance solid-state batteries and other innovative technologies. The announcement marks a strategic shift for the company, leading to a surge in its share prices.
This comprehensive technology roadmap represents Toyota’s most detailed disclosure of its strategy to compete in the rapidly growing EV market, where it has trailed behind rivals such as Tesla. The disclosure comes ahead of the company’s annual shareholders meeting, during which governance and strategic decisions, including the gradual transition to battery EVs under former CEO Akio Toyoda, will be closely examined.
Following the announcement, Toyota’s shares experienced a 5% surge, reaching their highest level since August, at 2,173 yen.
As part of its plan, Toyota aims to launch next-generation lithium-ion batteries by 2026, offering improved range and faster charging capabilities. The company also highlighted a significant “technological breakthrough” that addresses durability issues associated with solid-state batteries. Toyota is actively developing methods to mass-produce these batteries, with commercialization expected between 2027 and 2028.
Solid-state batteries have the advantage of higher energy storage capacity compared to current liquid electrolyte batteries. This technology is expected to accelerate the transition to EVs by addressing a crucial consumer concern: driving range.
However, solid-state batteries are currently expensive and are likely to remain so for the foreseeable future. To mitigate this, Toyota plans to incorporate more cost-effective lithium iron phosphate batteries, which are a viable alternative to lithium-ion batteries and have played a pivotal role in driving EV adoption in China, the world’s largest vehicle market.
In the luxury segment, Toyota intends to produce an EV equipped with a highly efficient lithium-ion battery, providing an impressive range of 1,000 km (621 miles). In comparison, the long-range version of the lithium-ion-powered Tesla Model Y, the top-selling EV globally, can travel approximately 530 km based on U.S. standards.
Moreover, Toyota envisions an EV powered by a solid-state battery that could achieve an astounding range of 1,200 km with a charging time of only 10 minutes. By contrast, the Tesla Supercharger network, the largest of its kind, offers around 321 km of charge in 15 minutes.
Specific details regarding costs and required investments for these plans were not provided by Toyota.
Since last year, the company’s engineers have been exploring various options to revamp its EV strategy to enhance competitiveness. The roadmap revealed on Tuesday demonstrates that Toyota, under the leadership of CEO Koji Sato, has adopted many of these proposed changes, including the utilization of electric-axle technology and other advancements from suppliers like Aisin and Denso.
In a video shared on Toyota’s YouTube channel, Takero Kato, the president of the newly established Toyota EV unit BEV Factory, expressed the company’s desire to “change the future with BEVs” (Battery Electric Vehicles).