Toyota aims to get half of its global sales from electrified vehicles by 2025, five years ahead of schedule, and will work with Chinese battery makers to meet the accelerated global shift to electricity-powered cars. Increasingly stringent emissions regulations require more lithium-ion batteries in the next five years than the Toyota can produce.
Toyota, which already makes batteries for hybrids and hybrid plug-ins, will partner with China’s Contemporary Amperex Technology (CATL) and EV maker BYD Co Ltd for battery procurement.
The company has announced an ultra-compact two-seater designed for short-distance trips, with a maximum speed of 60 km (37 miles) per hour and 100 km range on a single charge.
EV sales are still expected to trail gasoline hybrid vehicle volumes by 2025, with the former expected to be fewer than one million vehicles.
On Thursday, Toyota announced it was teaming with Subaru Corp to develop a battery-electric SUV on a platform produced together as they seek to split costs.