Toyota to Meet Hybrid Vehicle Demand With Three New Battery Plants

Toyota is planning to address the increasing demand for hybrid vehicles with three new hybrid battery factories, including one dedicated for next-generation lithium ion packs, Automotive News has reported, citing the Japanese newspaper Nikkei as its original source.

It is reported that the company is likely to spend around $673.1 million on the planned plants, to facilitate an annual battery output of one million units by 2011.

Nickel-metal hydride batteries are likely to be produced at a plant in northern Japan, whereas the lithium ion battery plant will be based in Shizuoka, southwest of Tokyo. The new nickel-metal hydride plant is scheduled to start production in 2011 with an estimated output of around 300,000 batteries a year, while the lithium ion plant is likely to start production in 2010.

The move reportedly follows the announcement made by Nissan Motor about the advanced mass-production of lithium ion batteries and Honda Motor’s plan to introduce four new hybrid vehicles by 2015.

It is claimed that Toyota’s batteries are being built by Panasonic EV Energy, a joint venture between Toyota and Japanese electronics company Matsushita Electric.