Toyota Motor Corporation (TMC) has agreed with Panasonic Holdings Corporation (Panasonic HD) to make Primearth EV Energy Co., Ltd. (PEVE) a wholly-owned subsidiary. Particularly, TMC, in making the said deal, aims to strengthen its capabilities in mass-producing automotive batteries. The acquisition will take place in late March.

Among Toyota-affiliated companies, PEVE, Toyota Industries Corporation, and Prime Planet Energy & Solutions, Inc. mass produce batteries for hybrid electric vehicles (HEVs). Moreover, Prime Planet Energy & Solutions, where Toyota has 51% stake while Panasonic HD takes the remaining 49%, also manufactures batteries for BEV and plug-in hybrid electric vehicles. Toyota will continue collaborating with these companies in battery mass production and development.

More Competitive Batteries in Toyota’s EV Line

In addition to HEV batteries, PEVE plans to begin producing batteries for BEVs and PHEVs. Moreover, the company’s shift into mass-producing a wide variety of electric vehicle batteries will enable Toyota to respond flexibly to growing battery demand. At the same time, also helps to further boost mass-production competitiveness.

More competitive batteries will enhance the appeal of Toyota’s electric vehicle offerings. Furthermore, to contribute to achieving carbon neutrality through a multi-pathway approach.

After making PEVE a wholly-owned subsidiary, TMC will consider changing the name of the company. Presently, PEVE has 4,700 employees.

Toyota and Panasonic HD established PEVE, originally as Panasonic EV ENergy Co., Ltd., in December 1996. Panasonic took 60% stake while Toyota had the remaining 40%.

After the increased capitalization in Oct. 2005 as HEV market started to expand, Toyota raised its stakes to 60% while Panasonic took the rest of the stakes.

Finally, in June 2010, the company underwent name change to PEVE that saw further increase in TMC’s stake to 80.5 percent while Panasonic took the remaining shares.