Toyota is preparing to equip its hybrid lineup with advanced lithium-ion batteries, replacing the nickel-metal hydride (NiMH) technology used since the original Prius.
The move aims to improve efficiency and reduce costs, as strong demand for hybrids prompts the automaker to refocus its strategy.
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Most Toyota hybrids have relied on NiMH batteries for decades, but the new RAV4 has already shifted to a lithium-ion pack.
Other models will follow.
Production Shift and Cost Savings
Between 2027 and 2028, Toyota plans to convert battery production capacity in Japan to support up to 600,000 new vehicles annually.
The new cells are expected to lower costs by approximately tens of thousands of yen per vehicle, according to Toyota chief accounting officer Takanori Azuma.
“We plan to gradually transition from nickel to lithium while simultaneously expanding our production capacity,” Azuma said.
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“This will result in a cost reduction of approximately tens of thousands of yen per vehicle. We are striving to both improve performance and reduce costs.”
Toyota is also working with battery specialists, including CATL, on the development of its own lithium-ion cells.
In parallel, the company is developing bipolar lithium-ion cells for pure EVs, which could offer driving ranges of up to 621 miles (1,000 km).
Solid-state batteries are also in the pipeline, with potential ranges of up to 745 miles (1,200 km) and charging times of under 10 minutes from 10 to 80 percent.
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Toyota’s electrified vehicle sales rose 12 percent to 1.41 million units in the April-June quarter, even as overall retail sales fell 3.5 percent to 2.55 million vehicles.
