To accelerate domestic battery output and establish a reliable supply chain, Japan is awarding nearly 120 billion yen ($847 million) to fuel Toyota’s newly revealed EV battery tech strategy.
Japan gives $850M to support Toyota’s EV battery output
Japan’s Ministry of Economy, Trade, and Industry is designating storage batteries, such as those used in EVs, as “crucial to Japan’s economic security,” according to Nikkei Asia.
To avoid falling further behind in the transition to electric vehicles and establish a domestic supply chain, the Japanese government increased support for storage batteries with 330 billion yen ($2.3 billion) in subsidies.
Nearly $1 billion ($847M) in subsidies are dedicated to supporting Toyota’s recently revealed EV battery tech plans.
Toyota introduced several new innovations this week designed to increase its competitiveness in the rapidly expanding EV market and secure its place in the future of the auto industry.
Toyota’s new EV battery tech plans
One of the biggest revelations was the automaker’s battery tech roadmap, suggesting future Toyota EVs will achieve over 600 to 700 miles range by 2028 with several new EV battery types.
By 2027, Toyota intends to have two next-gen batteries in production. The first is the performance version, which uses the same NCM battery chemistry as its first EV, the bZ4X, but with 20% more range at 20% less cost.
Its second next-gen EV battery is expected to utilize a new bipolar structure using lithium iron phosphate (LFP), a chemistry several automakers like Rivian and Ford are also moving toward.
The popularized battery type will offer 20% more range but at a 40% cost reduction compared to its current model.
With the bZ4X offering 382 miles (615 km) CLTC range (only 252 miles EPA), a 20% increase would suggest over 458 CLTC miles range (about 300 EPA).
Toyota also claims it has “discovered a technological breakthrough” with solid-state batteries. By 2027-2028, the automaker plans to mass produce solid-state batteries, resulting in 20% more range and a 10-minute or less quick charge time.
The news comes after Japan and the US signed a trade deal over battery minerals and access to the $7,500 EV tax credit earlier this year.
It also reveals Japan’s willingness and urgency to advance batteries and electric vehicles in the region. The US, Japan, and other allies are looking for ways to reduce the reliance on China for key EV components like battery materials.
With a nearly $1 billion injection of funds, can Toyota finally catch up in the electric era? What do you guys think? Let us know in the comments.