Toyota tackles takeover of battery subsidiary Primearth EV Energy

Toyota wants to take over its battery subsidiary Primearth EV Energy, which it holds together with Panasonic, in its entirety and expand production to include larger batteries for purely electric vehicles in addition to batteries for hybrid cars. (Update at the end of the article)

To date, Toyota has held 80.5 per cent of the joint venture Primearth EV Energy (PEVE), while Panasonic owns the remaining 19.5 per cent. According to the Japanese car manufacturer, PEVE will also broaden its production focus with the complete takeover by Toyota planned for the end of March: In addition to batteries for full hybrids, energy storage systems for plug-in hybrids and battery-electric cars will then also roll off the production line.

Toyota states that the reason for the complete takeover is to strengthen its capabilities in the mass production of car batteries. With the expanded range of batteries, the company also wants to “respond flexibly to the growing demand for batteries and at the same time ensure that the competitiveness of mass production is further increased”.

PEVE was founded in 1996 as a joint venture between Toyota and Panasonic HD under the name Panasonic EV Energy, whereby Panasonic was initially still the majority shareholder with 60 per cent. This was followed by a capital increase in 2005, which reversed the ownership structure (Toyota: 60 per cent). In 2010, the company was renamed to its current name Primearth EV Energy and a further capital increase led to the current share distribution of 80.5% to 19.5%. The company currently employs around 4,700 people. Incidentally, Toyota is rethinking the name of the company on the occasion of the forthcoming complete takeover, according to reports.

Toyota also holds shares in two other battery manufacturers: Toyota Industries Corporation and Prime Planet Energy & Solutions. The latter company is also a joint venture between Toyota and Panasonic (51% to 49%) and already produces batteries for HEVs, PHEVs and BEVs in series.

Update 3 April 2024

Following Toyota’s announcement that it will completely take over its battery subsidiary Primearth EV Energy (PEVE), which it holds together with Panasonic, the company will be renamed. If the renaming is approved at PEVE’s Annual General Meeting of Shareholders at the end of June, the company will operate as Toyota Battery from 1 October 2024. In addition to batteries for hybrid cars, Toyota wants to expand production to include larger batteries for BEVs.

According to Toyota, “the new company name embodies our determination to leverage the technology and skills honed since PEVE’s establishment in 1996 to contribute to the competitiveness of Japanese batteries and become a company that provides high-quality and highly safe on-board batteries.”

global.toyota, global.toyota (update)