- The aim of the new unit, called the BEV Factory, is to produce electric vehicles with a range of 1,000 kilometers.
- BEV Factory will introduce a full range of battery electric vehicles with “next generation” batteries from 2026.
- The Japanese automaker is thus continuing its more aggressive push towards all-electric vehicles under new CEO Koji Sato.
A display of electrified Toyota vehicles at the 2022 New York Auto Show, April 13, 2022.
Scott Mlyn | CNBC
Shares in Japanese automaker Toyota rose 5% on Tuesday after the company said it will introduce a full range of battery-electric vehicles with “next-generation” batteries from 2026.
These will be developed and manufactured by a new EV unit called the BEV Factory, which was founded in May.
In a presentation Tuesday, BEV Factory President Takero Kato said Toyota is targeting a range of 1,000 kilometers (620 miles) for its electric vehicles. The BEV factory aims to produce about 1.7 million vehicles by 2030, Kato said.
In comparison, the Tesla Model 3 has a range of about 430 kilometers, while the long-range model has a range of about 570 kilometers.
Toyota aims to sell 1.5 million all-electric vehicles per year by 2026 and 3.5 million all-electric vehicles per year by 2030.
Separately, the company is also developing a method to mass-produce solid-state batteries for battery electric vehicles and aims to commercialize it in 2027-2028. Toyota said it is targeting a 20 percent improvement in range for all vehicles with solid-state batteries compared to current batteries.
This is being done in conjunction with a higher specification model that is currently being researched and developed. This model is targeting a 50% improvement in range compared to the current product.
Notably, Toyota said that it has discovered a technological breakthrough that addresses the battery life challenge of its solid-state batteries, and as such the company is “assessing and accelerating its adoption in conventional HEVs.” [its] Development as a battery for BEVs.”
HEVs refer to hybrid electric vehicles, which are vehicles powered by a conventional internal combustion engine in combination with one or more electric motors.
That could signal another shift in the automaker’s EV strategy under new CEO Koji Sato, who took the helm in April. In February, Sato said the company will “accelerate the development of BEVs with a different approach than before,” Nikkei reported.
Under former CEO Akio Toyoda, Toyota has faced criticism for its slow move towards fully electric cars, instead sticking to the belief that fully electric vehicles are a solution, rather than the solution to the company’s goal of becoming carbon neutral. This strategy even lasted until the end of 2022, when new hybrid Prius models were introduced.
Read more about electric vehicles from CNBC Pro
Toyota executives had argued that they weren’t convinced all-electric vehicles would catch on as quickly as competitors think. They cited reasons such as roadblocks and saying the market is not “mature enough”.
On its website, Toyota states that the materials needed to make one battery for a long-range all-electric vehicle could be used to make six batteries for plug-in hybrid vehicles or 90 batteries for hybrid electric vehicles.
The more aggressive push towards all-electric vehicles could be seen in Kato’s presentation, with the BEV Factory President saying, “Our goal is to transform the future with BEVs… the next-generation battery electric vehicles will introduce new batteries that we will use.” “ are committed to becoming the world leader in battery electric vehicle energy use.”