Toyota needs more than a secure and steady supply of batteries if it hopes to meet its ambitious global sales goal for electric vehicles. If it hopes to compete, the Japanese automaker will need better quality lithium-ion batteries that don’t squeeze profit margins.
The automaker is turning to Chinese EV battery supplier CATL for the answer. The companies announced Wednesday a wide-ranging partnership that covers the gamut of the battery ecosystem from developing new technology and locking in supply to improving product quality and reusing and recycling batteries.
Toyota said in June that it would partner with CATL, also known as Contemporary Amperex Technology Co Ltd and EV maker BYD for battery procurement. This new agreement widens the scope of the relationship.