- General
- July 18, 2019
- 5 minutes read
Toyota Taps CATL For Supply Of EV Batteries
A Toyota electric vehicle image: Toyota Toyota has entered into a deal with China’s CATL that’ll see the latter supply…
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| A Toyota electric vehicle
image: Toyota
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Toyota has entered into a deal with China’s CATL that’ll see the latter supply electric vehicle batteries to the Japanese automaker. Discussions on new battery tech development, product quality improvements and the reuse and recycling of EV batteries have also commenced between both companies. This deal comes not long after Volvo, another top automaker, inked a similar deal with CATL and South Korea’s LG Chem.
CATL is a top manufacturer of electric vehicle batteries, with a 41% market share and $4.4 billion in 2018 revenues. The Chinese company’s battery output grew 261.1% from 630 MWh in 2017 to 2.274 GWh in 2018.
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| Toyota President and CEO, Akio Toyoda
image: Toyota
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As a stable supply of batteries is essential to any automaker producing electric vehicles, having CATL [a top manufacturer that can fulfill huge orders] as a supplier is good for Toyota. Toyota and CATL are not just stopping at battery supplies but also intend to work on other joint battery-related systems and initiatives.
This agreement benefits the two, with Toyota able to get a stable supply of EV batteries and CATL on the other hand getting more revenue. CATL has seen continued growth amid a booming electric car market. The battery maker [in an earlier filing with the Shenzhen Stock Exchange] forecast annual profit growth of between 120% to 150% in the first half of this year. CATL’s steady growth can be attributed to an increase in customers and strengthened cost control in the manufacturing process.
