Japanese legacy automaker Toyota is on track to mass-produce electric vehicle batteries with the acquisition of Primearth EV Energy from tech giant Panasonic Holdings Corporation on Tuesday, March 5.
Acquisition deal
According to the press release, Toyota and Panasonic agreed to transfer the full ownership of Primearth EV Energy to the electric automaker for an undisclosed amount.
The move is apparently part of Toyota’s strategy to boost the production of its “wide variety” of electric vehicle batteries, with the acquisition taking effect in late March.
For context, the 28-year electric battery joint venture with Panasonic currently mass-produces prismatic nickel–metal hydride (Ni-MH) and li-ion battery packs for hybrid electric vehicles, including the popular Toyota Prius.
The Japanese automaker is already exploring the unit’s potential to also produce batteries for all-electric and plug-in hybrid models.
Purpose
This major buyout is crucial for Toyota’s strategy to develop and mass-produce innovative electric vehicle batteries.
The Japanese legacy automaker believes that the deal will aid them to “respond flexibly to growing battery demand.” In addition, it will also support its efforts to develop more competitive electric vehicle models with extended driving range and improved efficiency.
“More competitive batteries will enhance the appeal of Toyota’s electric vehicle offerings and contribute to achieving carbon neutrality through a multi-pathway approach.”
Toyota
About Primearth EV Energy
Panasonic and Toyota formally founded Primearth EV Energy as Panasonic EV Energy in December 1996. The Japanese tech giant controlled 60% of the joint venture, while Toyota owned the remaining 40%.
Toyota raised its stake in the joint venture to 60% after it adopted hybrid technology in 2005. In June 2010, it further increased its stake to 80.5%, leaving the other 19.5% to Panasonic.
Primearth EV Energy, along with other Toyota-affiliated companies like Toyota Industries Corp and Prime Planet Energy & Solutions, mass produce hybrid vehicle batteries.
Prime Planet also produces power batteries for BEVs and PHEVs, while Primearth EV Energy will also develop such battery technologies soon.
Presented below are the key information about Primearth EV Energy:
| Name | Primearth EV Energy Co., Ltd. (name change under consideration) |
| Employees | Approx. 4,700 |
| History | Dec 1996 Panasonic EV Energy Co., Ltd. established (Ownership: Toyota 40%, Panasonic HD 60%*) Oct 2005 Increased capitalization due to HEV market expansion. Ownership following Toyota’s capital increase: Toyota 60%, Panasonic HD 40%* Jun 2010 Company renamed Primearth EV Energy Co., Ltd. Ownership following Toyota’s capital increase: Toyota 80.5%, Panasonic HD 19.5% |
