Semiconductor batteries
One of Toyota's key focus areas is battery technology. The company plans to move from research to production of solid-state batteries, which promise higher energy density and shorter charging times compared to current lithium-ion batteries. Toyota aims to launch vehicles powered by solid-state batteries by 2027/2028. In addition, the automaker announced a breakthrough in overcoming durability issues associated with solid-state batteries, although it did not provide specific details. Toyota also revealed plans to launch a more energy-dense battery for EVs in 2026, with a range of 1,000 km per charge and a charge time of 20 minutes or less. In addition, the company wants to cut costs by 20% compared to its current bZ4X electric car.
Giga casting
In terms of manufacturing technology, Toyota plans to adopt Tesla's Giga casting process to simplify and reduce the cost of producing its next-generation EV. By using massive aluminium die-casting machines, Toyota aims to streamline production and reduce complexity. The company also highlighted the potential of flexible assembly lines, self-driving vehicles and digital technologies to significantly reduce factory capital costs and other fixed costs, including labour costs.
Vehicle aerodynamics
Recognising the importance of aerodynamics in improving electric vehicle efficiency and extending range, Toyota revealed its collaboration with Mitsubishi Heavy Industries, drawing on the expertise of rocket engineers. The carmaker aims to achieve an air drag coefficient of up to 0.1 using Mitsubishi's advanced technology. A lower coefficient of air resistance contributes to higher efficiency and better on-road performance, as demonstrated by Tesla's Model Y and the Lucid Air luxury performance electric car.
Toyota also announced its intention to incorporate technologies from key suppliers such as Aisin and Denso to introduce smaller "eAxles" that combine electric motors and powertrain components in an EV. These components are expected to increase range and cargo space in the rear. In addition, Toyota is developing silicon carbide wafers for semiconductors that will be used in the inverters of the next-generation EV. According to Toyota, the use of these wafers is expected to reduce energy losses to the electric motor by up to 50%.
Investing
In addition to key fundamental factors, Toyota also has favorable technical market conditions for its stock. Since the high, the price has seen a decline of almost 40% while maintaining the bull market criteria. This makes this company an ideal candidate for inclusion in an investment portfolio.
Summary
With these breakthroughs in battery technology, manufacturing processes, aerodynamics, and supplier partnerships, Toyota aims to revolutionize the electric vehicle market and position itself as a leader in sustainable mobility. The company's commitment to innovation underscores its determination to meet the growing demand for electric vehicles while addressing concerns around range, performance and affordability.
As the automotive industry undergoes a significant transformation, Toyota's bold moves are set to redefine the future of electric vehicles and offer consumers a new era of sustainable and efficient mobility.[1]
Peter Svoreň, Executive Director of APME FX
* Past performance is no guarantee of future results.
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