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In a move aimed at bolstering its prowess in the mass production of automotive batteries, Toyota Motor Corporation announced its plans to assume complete control over its joint venture with Panasonic Holdings, Primearth EV Energy (PEVE), converting it into a wholly-owned subsidiary.
According to S&P Global Commodity Insights, the announcement was made on Tuesday, marking a significant development in the automotive and energy sectors. The acquisition, slated to conclude by the end of March, signifies Toyota's commitment to fortify its capabilities in battery manufacturing, a crucial aspect of its electrification strategy. While the exact financial details of the takeover were not disclosed by Toyota, the move underscores the company's determination to solidify its position in the rapidly evolving electric vehicle (EV) market. The takeover is meant "to strengthen its capabilities in mass-producing automotive batteries. In addition to HEV batteries, PEVE plans to begin producing batteries for BEVs (battery EVs) and PHEVs (plug-in HEVs). The acquisition is scheduled to take place in late March," Toyota said. Presently, Toyota holds an 80.5 per cent stake in PEVE, with Panasonic owning the remaining 19.5 per cent. PEVE, headquartered in Japan, specializes in the production of prismatic nickel-metal hydride (Ni-MH) and lithium-ion (Li-ion) battery packs primarily for hybrid EVs (HEVs). With facilities located in Kosai, Shizuoka prefecture, and Taiwa, Miyagi prefecture, PEVE boasts a robust production capacity. Toyota's decision to take full control of PEVE comes as part of its broader strategy to expand its battery portfolio. In addition to manufacturing batteries for HEVs, PEVE is poised to venture into producing batteries for battery EVs (BEVs) and plug-in HEVs (PHEVs). This diversification aligns with Toyota's vision to cater to the evolving demands of the electrified automotive market. Notably, PEVE's domestic production capacity stands at approximately 1.4 million units per year for Ni-MH battery packs and 200,000 units per year for Li-ion battery packs. By integrating PEVE fully into its operations, Toyota aims to leverage its expertise and resources to further enhance production efficiency and technological innovation. This move also underlines Toyota's collaborative efforts with Panasonic in the realm of battery technology. Apart from PEVE, the two companies jointly operate another battery venture, Prime Planet Energy & Solutions (PPES), focused on the manufacturing of lithium-ion batteries for HEVs. Such partnerships underscore the importance of collaboration in advancing sustainable mobility solutions. Meanwhile, market data from S&P Global Commodity Insights reveals a stable pricing trend for battery-grade lithium carbonate and lithium hydroxide in North Asia. As of March 4, battery-grade lithium carbonate was assessed at USD 13,800 per metric ton CIF North Asia, while lithium hydroxide stood at USD 13,600 per metric ton CIF North Asia. These figures reflect the market dynamics shaping the battery supply chain amid growing demand for electric vehicles. By consolidating its control over PEVE, Toyota aims to strengthen its position in the burgeoning EV market, signaling a transformative shift towards sustainable mobility solutions. (ANI)
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