Toyota Wants to Keep Battery R&D Ties with Tesla

Toyota Wants to Keep Battery R&D Ties with Tesla

Toyota wants to continue working with US electric-car builder Tesla on battery technology after a battery-supply agreement between the two companies ends this year. 

“Tesla has quite a clear business strategy for developing a better battery,” said Osamu Nagata, president and CEO of Toyota Motor Engineering & Manufacturing North America. “[Automakers] as well as suppliers need to work on developing better batteries.”

Tesla currently supplies Toyota with batteries for the Rav4 EV, but that contract will come to an end this year, effectively ending the ties between the two companies. But Toyota owns a 2.5 percent stake in Tesla, and has no plan to stop using battery-powered vehicles anytime soon, although the brand’s thoughts are shifting.

SEE ALSO: Toyota Focusing on Hydrogen Fuel Cell Development

Toyota is changing its focus from long-range electric vehicles to hydrogen fuel cell power. The brand will continue to invest in hybrids and plug-in hybrids, but Toyota has decided that EVs will never offer the range or fast-charging capabilities to make them viable in all circumstances.

[Source: Automotive News]

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