Toyota receives subsidies for particularly fast-charging solid-state battery

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Toyota's development and production plans for solid-state batteries and the next-generation batteries (performance version) have now been certified by the Japanese Ministry of Economy, Trade and Industry (METI). This means that they can be supported by the government program "Supply Assurance Plan for Batteries". The particularly expensive infrastructure for the solid-state battery is thus financially secured.

Only one electric car at the start

Toyota started developing its own battery-electric cars and storage systems relatively late. The bZ4X, its own electric car, has only been on the market since 2022. For a long time, the company relied on hybrid drives, in which nickel-metal hydride batteries primarily guaranteed a long service life. At the same time, lithium-ion and solid-state batteries were developed.

These now offer Toyota the opportunity to bring fast-charging solid-state batteries to the market relatively early on. With the series production of this design, also known as "solid state" (contrary to Toyota's designation with partially solid electrolyte), a future-oriented cell chemistry concept is to be launched from 2026. The sticking point, however, is that this type of battery cannot be manufactured conventionally.

High investment risk

Toyota is therefore facing high investments in completely new and, in comparison, more expensive production facilities. Although solid-state technology should drastically reduce charging times and thus make electric cars even more attractive, completely new battery designs now make this investment appear risky. Reasons for the government to provide financial support even for the large company Toyota.

The corresponding production plan envisages that the next generation of batteries, which Toyota calls the "performance version", will be manufactured by Prime Planet Energy & Solutions, Inc (PPES) and Primearth EV Energy Co, Ltd (PEVE) from 2026. Both companies are part of the car manufacturer's corporate network. PEVE was recently fully acquired by Toyota (from co-owner Panasonic) and will consequently be renamed "TOYOTA BATTERY Co., Ltd." from October 1. The manufacturer states a "gradual introduction from 2026" as the time frame for both battery types and is aiming for an annual volume of nine gigawatt hours of battery capacity produced. As a precaution, however, Toyota is not yet disclosing what proportion of this will be accounted for by the various battery types.

Multi-pronged approach

According to a press release from June 2023, "Performance Version" means different things: Firstly, Toyota states a range of 1000 kilometers as a general target thanks to higher energy density and a charging speed of 20 minutes "or less" between ten and 80 percent SOC. A distinction is then made between storage types:

• With lithium iron phosphate cell chemistry, the range should increase by 20 percent from 2026/27, the costs should fall by 40 percent and the charging time to 30 minutes.
• Thanks to a high nickel content and a so-called bipolar structure, lithium-ion batteries are expected to reduce energy density and costs by ten percent and reduce charging time to 20 minutes from 2027/28.
• From 2027/28, Toyota – – also expects solid state to increase the range by 20 percent and the charging time by just ten minutes.

The "Initiatives to Ensure a Stable Supply of Batteries", a guideline defined by METI, is based on the Economic Security Promotion Act. It is intended to strengthen the production infrastructure for batteries. In particular, this includes battery cells and materials and production facilities classified as critical.

The government support is being provided because the battery industry requires high investments in efficient factories due to its complex production. In addition, production capacities and technologies of the Japanese battery industry and its suppliers as well as the material supply chain are to be strengthened.

For Toyota, the further development of battery development and production in Japan means a strengthening of the production infrastructure for batteries. The manufacturer hopes that this will increase its competitiveness in the field of electric cars and thus ultimately achieve the desired CO₂ neutrality.

(fpi)