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Toyota forms new division to accelerate next-generation battery development

Toyota has established a dedicated unit with around 50 engineers to speed up research and production processes for advanced automotive batteries, aiming for higher performance beyond lithium-ion.

By Editorial Desk Updated
A man in a blue jacket examines a large battery pack with orange cables on a metal table beside a silver car in a workshop
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Toyota Motor Corporation has created a specialist division to quicken the pace of next-generation battery research and development, as confirmed by a senior executive at the North American International Auto Show. The move is intended to strengthen Toyota’s position in hybrid and electric vehicles by pushing battery performance beyond what current lithium-ion technology can offer.

The new division, set up in January 2010, brings together about 50 engineers tasked with studying production processes for advanced batteries. Koei Saga, Toyota’s managing officer for battery development, said the company sees innovation in battery technology as central to the future of electric mobility. While lithium-ion batteries are already a step forward over the nickel-metal hydride units in the current Prius, Saga made clear that Toyota’s ambitions extend to batteries with far superior performance.

Focus on lithium-ion and beyond

Toyota’s current Prius hybrid uses nickel-metal hydride batteries, but the company has confirmed that the plug-in hybrid version, due for launch in 2012, will adopt more energy-efficient lithium-ion cells. Even so, the new division’s remit is not limited to lithium-ion. Toyota is seeking breakthroughs that could deliver batteries with greater energy density, faster charging and improved durability, key factors for expanding the appeal of hybrid and electric vehicles.

Collaboration and sourcing strategy

Toyota has a longstanding partnership with Panasonic for battery development, and the company is open to procuring some batteries from external suppliers if needed. However, Toyota plans to continue relying primarily on its own technology. No details have been given about the specific chemistries or timelines for the next-generation batteries, and the company has not indicated when products using the new technology will reach the market.

The push for advanced battery technology comes as global carmakers race to improve the range, cost and performance of electrified vehicles. For Toyota, which has built its reputation as a hybrid pioneer, delivering a step change in battery capability is seen as essential to maintaining its lead as more competitors enter the market with new electric models.

Implications for Toyota’s hybrid and electric future

For buyers and owners, advances in battery technology could mean hybrids and electric vehicles with longer range, shorter charging times and potentially lower costs. For Toyota’s workforce, the new division signals continued investment in electrification expertise. Suppliers such as Panasonic will remain closely involved, but Toyota’s willingness to consider outside sourcing suggests a pragmatic approach to meeting future demand.

No technical details or production targets have yet been revealed for the next-generation batteries, but Toyota’s investment in this area underlines the importance it places on staying ahead in the rapidly evolving market for electrified vehicles.

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