A Deep Dive into Toyota's Batteries

Toyota is betting on a specific battery technology for electric vehicles. Will it manage to deliver?

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‘‘It is in Toyota's DNA that mistakes made once will not be repeated.’’

― Akio Toyoda, Chariman of Toyota Motor Corporation

Toyota has been sending mixed signals regarding batteries for some time. On one hand, they periodically announce breakthroughs in battery technology, while on the other, they dismiss batteries in favor of hydrogen. This contradiction persists, raising questions on how a company as renowned as Toyota can contradict itself so frequently.

The explanation lies in the significant risk Toyota took with hybrid vehicles in the late 1990s. This gamble paid off handsomely, establishing Toyota as the global leader in hybrid electric vehicles. However, they soon missed out on the trend towards fully battery powered electric vehicles (BEVs) using lithium-ion technology. While competitors were rapidly advancing BEV development, Toyota sought to maintain its edge in hybrid technology, seemingly reluctant to acknowledge that fully electric vehicles might be the superior technology.

Toyota is not contradicting itself; rather, it is engaging in corporate double-speak, leveraging its strengths while simultaneously developing new technologies in hopes of gaining a fresh competitive edge. The question is which one?

What is Toyota currently working on? What do they aim to achieve? What is the future vision for Toyota? These questions inspired this article, where we delve into Toyota's involvement with batteries. We'll start with the history of Toyota's battery engagement, then move on to explore their new technology roadmap, their solid-state battery initiatives, and their patents.

Let's dive in! 🔋

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The History of Toyota’s Involvement with Batteries

Toyota's involvement with batteries didn't start with electric vehicles but with the foundational need for reliable starting batteries in their combustion engine vehicles. Over the years, Toyota has refined its battery technology, ensuring vehicles start reliably in various conditions.

The real turning point came with the introduction of the Prius in 1997, which utilized a nickel-metal hydride (NiMH) battery.¹ This was a significant step as it marked Toyota's commitment to hybrid technology. Just a year earlier, in 1996, Toyota established Prime Earth EV Energy as a joint venture with Panasonic to develop these batteries.² The NiMH battery was chosen for its balance of energy density, longevity, and safety over the then-developing lithium-ion technology, which was less mature and much more expensive.

By the late 2000s, as lithium-ion technology became more reliable and cost-effective, Toyota began exploring the use of lithium-ion batteries. It established the Battery Research Division in 2008 and gradually introduced lithium-ion batteries in various models, including the latest iterations of the Prius and other hybrid models.

Toyota's entry into the fully electric vehicle market came much later. In 2021, it established Prime Planet Energy & Solutions as a new joint venture with Panasonic to accelerate the development of batteries for use in different products. Soon after, in 2022, Toyota introduced the bZ4X battery powered electric vehicle.