Toyota (NYSE:TM) and Idemitsu Kosan (TYO:5019), an oil refiner, announced Thursday that the two have joined forces to collaborate on the development and large-scale manufacturing of all-solid-state batteries.
Their shared goal is to bring next-generation batteries to the market by 2027-28, followed by a significant ramp-up in production. Toyota's strategic shift to electric vehicles, announced in June, includes plans to incorporate these advanced batteries, which promise a substantial enhancement in EV driving range.
Idemitsu Kosan, the second-largest oil refiner in Japan, has been actively working on the development of solid sulfide electrolytes, a critical component used in batteries.
Toyota CEO Koji Sato told a news conference, "By bringing together the material development technologies of both companies, Idemitsu's material manufacturing technology, and Toyota's battery mass production technology, we will engage in full-scale mass production of all-solid-state batteries."
According to Toyota, an electric vehicle equipped with a solid-state battery could achieve a range of 746 miles and have a charging time of only 10 minutes. However, these solid-state batteries are currently quite expensive, and it is anticipated that they will maintain their high cost for several years.
In line with the global automotive industry's shift toward electrification, Idemitsu has been actively expanding its involvement in EV battery supply chains. This includes increasing its stake in the Australian lithium developer, Delta Lithium, to 15% earlier this year.
Shares of TM are up 1.84% in early trading on Thursday.