Toyota shares rise on news of new batteries for electric vehicles.
Toyota Motor Corp (TYO: 7203) saw a rise of over 5% in its shares on the Tokyo stock exchange on Tuesday, following the company’s announcement regarding electric vehicles. Toyota has confirmed that it will launch a range of electric vehicles equipped with next-generation batteries in 2026.
At present, the company’s stock is at ￥2,174, after adding ￥105 from its previous close of ￥2,069. The stock has witnessed an increase of over 6% in the last five days, 13% in one month, and more than 20% over the past three months. Moreover, Toyota stock is trading at a nearly 20% jump since January.
Reports suggest that Toyota will develop the vehicles under its BEV Factory, an EV subsidiary that it created last month. According to an official Toyota presentation by BEV Factory president Takero Kato, Toyota plans to produce around 1.7 million electric vehicles by 2030. Kato also revealed that each vehicle would have a range of 1,000 kilometers (621 miles).
Toyota’s projection for the range is over 43% higher than the Tesla Model S’ 405 miles, which is currently Tesla’s longest-range vehicle.
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In 2021, Toyota announced its plans to invest $35 billion in its EV lineup and roll out 30 models by 2030. The company also said that it would spend $13.5 billion on battery production for electric vehicles. Despite pioneering hybrid vehicles with its Prius model in 1997, Toyota has been slow to join the all-electric race. In fact, Toyota had expressed that it wasn’t ready and seemed to downplay public acceptance of EVs.
Last year, Jack Hollis, executive vice president of sales at Toyota Motor North America, stated that the market does not have the “mass movement” Toyota needs, and “the marketplace isn’t mature enough and ready enough.”
Toyota Batteries for Its Electric Vehicles
To overcome the durability problem, Toyota has now found a way around creating all-solid-state batteries. This discovery is now causing the company to review its conventional HEVs (hybrid electric vehicles), and its battery development for standard electric vehicles.
Solid-state batteries offer more energy and faster charging. In addition, these batteries are less likely to ignite and may be preferred over lithium-ion batteries. However, solid-state batteries are very expensive to make and more prone to cracking.
A breakthrough by Toyota with solid-state batteries could transform the entire electric vehicle landscape. This achievement could accelerate its current race against EV giants like Tesla. According to Toyota, an electric vehicle with a solid-state battery could have a range of 1,200 km. In addition, charging could be completed in under 10 minutes. In comparison, Tesla’s Supercharger network requires 15 minutes of charging time over a distance of 321 km.
So far, Toyota has not provided any details regarding the cost. However, since solid-state batteries are expensive to produce, vehicles equipped with these batteries could cost more than the average electric cars in the market today.
