Toyota's crystal ball apparently flashes a future where electric vehicles are in large use. So to prepare for the inevitable, the Japanese carmaker's supply chain is gradually integrating high-quality batteries, designed by Panasonic and currently found on Tesla cars.
Already, Toyota sedans running on Chinese roads are powered by Panasonic batteries that share the same technology approved by Tesla. Specifically, these batteries are installed on the fresh plug-in hybrid models of Toyota Corolla and Levin introduced in China earlier this year, a new report said.
According to Reuters, "Toyota is using Panasonic's cylindrical batteries," on electric vehicles sold to Chinese consumers starting this 2019. The batteries are identical to what Tesla uses for its EVs as they have the same size.
But Toyota's batteries make use of different composition and were said to have been co-developed by Toyota and Panasonic engineers.
"Japan's biggest automaker co-developed the batteries with Panasonic over a period of several years," the report added.
The latest move by Toyota, it is understood, is seen as steps being undertaken in preparation for the expansion of the company's electric vehicle division. Along this line, Toyota is making sure that it is securely tapped on a steady supply of premium power cells for its further push on the EV segment.
It was evident that the company is positioning itself "amid the accelerated global shift to electricity-powered cars," added the same Reuters report.
Toyota's pivot to the EV market segment seemed represented by the company's business approach in the United States. As noted by CNET in a report, the carmaker at the moment primarily sells hybrid or plug-in hybrid models in the U.S. under the Prius brand.
The company, however, is expected to roll out its first dedicated EV in North America at the start of 2020, the report added.
As a result of this gearing up by Toyota, the company has reportedly ordered at least 50,000 units of the same cylindrical batteries now in use on EVs being marketed in China. This pushed Panasonic's battery manufacturing operations in full capacity as it also needs to fulfill orders coming from Tesla.
For now, Panasonic exclusively supplies the battery needs of the U.S. carmaker but that could change soon. Reuters said Elon Musk's firm is looking to source its manufacturing need from other suppliers, possibly from South Korea.
If true, the move is seen as Tesla securing its supply chain in the wake of more carmakers making their entry on the EV market.
