Toyota’s battery joint venture with Matsushita Electric will start producing lithium-ion batteries in 2009 as part of Toyota’s push to roll out more electric and hybrid cars.

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Toyota’s battery JV with Matsushita Electric currently produces nickel-metal hydride batteries that are used in Toyota’s hybrid vehicles. It is building two new factories to bring annual output capacity to one million batteries around 2010.


Toyota has said it will use lithium-ion batteries in a rechargeable, plug-in hybrid vehicle due for launch for fleet customers in Japan, the United States and Europe by 2010.


“We plan to use both nickel-metal hydride and lithium-ion batteries, choosing the appropriate option depending on the vehicle,” President Katsuaki Watanabe told a news conference to outline Toyota’s environmental activities.


The third-generation Prius, due next year, will continue to use nickel-metal hydride batteries. Supply constraints on batteries have led to lower sales of the in-demand Prius (sales in the US were almost 40% down in May with dealers clamouring for stock).

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Executive Vice President Takeshi Uchiyamada, chief engineer for the original Prius, told Reuters Toyota would continue to make most of its hybrids in Japan due to the difficulty of making key components abroad.


Toyota is due to showcase new hybrid-only models, under both the Toyota and Lexus luxury brands, at the next Detroit auto show in January.


Carmakers are in an intense race to develop lithium-ion batteries suitable for long distance hybrids, but the technology isn’t straightforward. There have also been safety concerns after massive recalls of the same type of battery used by laptop computer manufacturers.


See also: AUSTRALIA/THAILAND: Toyota to begin local Camry hybrid production