The world’s largest automaker Toyota intends to spend $13.5bn on electric vehicle (EV) battery development, while Germany’s BMW has placed orders worth $24bn in EV batteries.
At Toyota, the company will funnel funds into research and development of battery technology, aiming to reduce battery production costs by 30pc by using varied materials. Meanwhile, it also aims to lower battery consumption by 30pc, to enhance the single-charge range on its EVs. Toyota may be the first manufacturer to use solid-state batteries, which are considered to hold denser charges and fill up quicker than Li-ion batteries.
BMW has set up contracts worth $24bn, up from $12bn previously, as demand for EVs continues to grow in Europe. Germany, the carmaker’s headquarters, has one of the largest EV purchase incentives among EU member states. Contemporary Amperex Technology will supply the batteries from China, Samsung from South Korea, and Northvolt from Sweden. These units will be used in BMW’s i4 sedan, iX SUV, and other EVs produced by the company through 2024.