The Japanese company has entered into agreements with two Chinese manufacturers: CATL and BYD
In a move to diversify the supply of critical components, Toyota reported that it will buy the batteries of two Chinese manufacturers: contemporary Amperex technology (CATL) and BYD. The Japanese automaker has stated that it will be the first time it will purchase critical components from Chinese manufacturers.
Toyota has expanded its supplier offering in Japan, making agreements with Toshiba and GS Yuasa in addition to its long-term partnership with Panasonic. The company is trying to support its sales target of at least 5.5 million electrified vehicles to include more than half of total sales by 2025, shifting what had been a 2030 target in five years. The company sold approximately 1.6 million electrified vehicles in 2018.
Toyota is moving from a more prudent strategy to fully electric cars
Despite its youth, the eight-year Fujian-based CATL has overtaken Panasonic in sales as the world’s largest battery supplier in 2017. In February, for example, it secured a battery supply contract for around 1 million electric vehicles from Honda.
Toyota, on the other hand, is moving from a more cautious strategy to fully electric cars, with most electric vehicle sales coming from petrol hybrids. The Japanese company is also accelerating its electrification history to capture the sales subsidies offered by the Chinese government, which excludes hybrids.
CATL and BYD are expected to supply lithium-ion batteries for Toyota electric vehicles starting next year in China, the world’s largest electric vehicle market in 2018, according to analyzes provided by car data consultancy EV Volumes.
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