Key Takeaways
- Toyota has delayed plans for a new EV battery plant in Japan, originally set to start production in 2028.
- The automaker attributes delays to lower-than-expected EV demand and rising construction costs.
- A $14 billion battery plant in the US will commence battery shipments next month, supporting Honda hybrids.
Delayed Ambitions for Toyota’s EV Batteries
Toyota Motor Corporation has postponed its plans for a new electric vehicle (EV) battery manufacturing plant in Japan, which was expected to produce advanced batteries with ranges exceeding 620 miles (1,000 km) by 2028. These delays add to the uncertainty surrounding the timeline for the next-generation batteries first announced nearly two years ago.
Initially, Toyota aimed to roll out a “Performance” battery by 2024, boasting a nearly 500-mile (800 km) range and fast-charging capabilities—able to charge from 10% to 80% in just 20 minutes. Following this, the company planned to introduce a “Popularization” lithium iron phosphate (LFP) battery by 2027, which would offer over 370 miles (600 km) of range and faster charging—40% quicker than the current bZ4X model. Finally, the “High Performance” lithium-ion batteries were slated for release in 2028, targeting the ambitious 620-mile benchmark.
The planned construction site covers approximately 280,000 square meters in Fukuoka, Japan. However, recent reports from Asahi Shimbun indicate that delays have already set in, with President Koji Sato scheduled to meet with local officials to discuss the status of the project. The onset of construction, initially set for this year, is now in doubt.
According to sources within the company, the setbacks are largely due to lower-than-anticipated demand for EVs and increasing construction costs. This news comes at a time when Toyota is also reconsidering the launch of its next-generation electric Lexus sedan, as it aims to ensure the product meets the technological expectations of consumers.
Meanwhile, in the United States, Toyota’s $14 billion North Carolina battery plant is positioned to begin battery shipments next month, which will supply batteries for approximately 400,000 Honda hybrids. This strategic move indicates Toyota is still advancing its battery technology initiatives, although at a slower pace in Japan.
Despite claiming that the delays stem from reduced EV demand, the market is showing signs of recovery. For instance, sales of the bZ4X have recently surged, making it the top-selling EV in Norway for January. Furthermore, global EV sales have seen double-digit growth into early 2025, with over 17 million units sold in 2024.
Experts warn that Toyota’s postponements could further widen the gap between it and global electric vehicle leaders like BYD. Known for its affordable and long-range Blade LFP batteries, BYD has positioned itself as a profitable competitor, surpassing Tesla in revenue for the first time at over $100 billion last year.
Despite unveiling an updated lineup of electric SUVs intended for the European market, including the refreshed bZ4X, industry analysts are questioning why Toyota would downplay its ambitions at this critical juncture. The market awaits further updates as the situation evolves.
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