% TMC won't sell EVs but makes profit$ on EV batteries %

https://www.washingtonpost.com/business/toyota-finally-has-the-power-in-electric-cars/2019/01/22/539ef10a-1e9a-11e9-a759-2b8541bbbe20_story.html?noredirect=on&utm_term=.9dbfaec1aeef
Toyota Finally Has the Power in Electric Cars
January 22 2019  Anjani Trivedi | Bloomberg

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Watch out, electric-car battery makers — Toyota Motor Corp. has arrived.

Asia’s biggest automaker is setting up a joint venture with Panasonic Corp.
to produce batteries for partners such as its Daihatsu unit, Mazda Motor
Corp. and Subaru Corp. that together account for more than 20 percent of
global car production. Toyota will own 51 percent of the venture, to be
established by the end of 2020.

For Panasonic, which supplies batteries to Tesla Inc., it’s good news. The
spreading of risk away from Elon Musk’s company will relieve investors. Much
of the Japanese company’s future prospects — and renewed image — have been
pinned to the U.S. electric-car maker. Tesla’s production delays have hurt
Panasonic, even if the battery segment accounts for only a fifth of its
sales.

It’s also a smart move for Toyota, which has been late to the electric-car
race, focusing instead on futuristic technologies such as hydrogen fuel
cells. As one of the world’s largest carmakers, it needed to get on the
electric bandwagon quickly, especially as it shifts to a higher gear in
China. Panasonic had a 15 percent share of the electric-vehicle battery
market as of 2017. While funding details were sparse, Toyota’s deep pockets
will help. 

Companies and subsidiaries that specialize in lithium ion batteries for
electric cars have sprung up in recent years. From South Korean champions
such as Samsung SDI Co. and LG Chem Ltd. to China’s Contemporary Amperex
Technology Ltd., or CATL, the list goes on. The rush to invest makes sense.
Ultimately, the battery is the biggest cost of an electric car. Own that
and, in simple terms, the rest of the car is effectively just a shell that
goes over the top.

Car manufacturers produce only a fraction of an electric vehicle — most
comes from parts makers. Take General Motors Co.’s Bolt, for example. The
U.S. automaker produces 11 percent of the plug-in model, compared with 20
percent of its regular internal combustion engine cars.

Battery makers have been racking up big orders from carmakers — and passing
on the costs of metals they use such as cobalt and nickel. If Toyota and
Panasonic can get it right, that business model may no longer be feasible.
Battery makers have struggled to control other factors such as margins,
locations, sizes and volumes — as Panasonic’s experience with Tesla has
demonstrated. 

The cost of making batteries widely affordable for consumers remains
elusive. As CATL has shown, bringing down average selling prices means
accepting waning margins (albeit from a fat starting point). It also
requires increasing and unsustainable amounts of investment.

Bringing the process in-house will enable Toyota to cut costs, streamline
operations and control the supply chain. The company is reverting to a
time-honored Japanese practice. Carmaker partnerships and alliances of
various stripes haven’t shown any concrete results yet. They leave open the
question of who ultimately owns the technology, and haven’t addressed how
they will deal with competition among partners in the same market, as we’ve
written. But a venture with aligned and complementary interests could move
must faster toward the affordable car of the future.

The power in the electric-battery market looks to be shifting in Toyota’s
direction with this latest venture.

To contact the author of this story: Anjani Trivedi at
[email protected]

To contact the editor responsible for this story: Matthew Brooker at
[email protected]

This column does not necessarily reflect the opinion of the editorial board
or Bloomberg LP and its owners.

Anjani Trivedi is a Bloomberg Opinion columnist covering industrial
companies in Asia. She previously worked for the Wall Street Journal.
[© washingtonpost.com  2019 Bloomberg L.P.]


https://japantoday.com/category/tech/panasonic-to-supply-nickel-metal-hydride-battery-systems-for-subarus-first-hybrid-ev
Panasonic to supply nickel metal hydride battery systems for Subaru’s first
hybrid EV
Mar. 29, 2013  Panasonic Corp on Friday announced that it will supply nickel
metal hydride (Ni-MH) battery systems for Fuji Heavy Industries Ltd's
first-ever Subaru hev ... Panasonic started developing Ni-MH battery cells
for HEVs in 1997 and has been mass producing them since 2004. Panasonic's
Ni-MH battery cells are durable and able to maintain a high charging/
discharging capacity over an extended period of time, thanks to ... polar
plate sintering technology ...


+
https://www.msn.com/en-my/news/national/malaysia-to-roll-out-tesla-like-battery-for-electric-vehicles-by-2020/ar-BBSua1Q
Malaysia to roll out Tesla-like battery for electric vehicles by 2020
CYBERJAYA: Malaysia will become the first country in Asean to produce
lithium ion battery in the next 18 months ...




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