Toyota and Contemporary Amperex Technology Co., Limited, Toyota and Panasonic, and General Motors and LG Chem are some of the largest partnerships between auto OEMs and electric vehicle battery manufacturers. A comprehensive coverage of the partnerships and several others is presented below.
Toyota and Contemporary Amperex Technology Co., Limited
- Toyota and CATL partnership was announced on July 19, 2019. The agreement entails production of EV batteries and new energy vehicle (NEV) batters for plug-in hybrids, new battery technology development, and recycling and reusing spent batteries.
- Toyota and CATL established joint systems and continuously engage in distinct initiatives jointly.
- CATL is the leading supplier of vehicle drive battery systems in the globe with a market share of 27.9%.
Toyota and Panasonic
- Toyota and Panasonic’s partnership was announced on February 3, 2020.
- According the agreement, the two companies established Prime Planet Energy & Solutions, Inc., a joint venture that solely focuses on automotive prismatic batteries.
- The partnership targets to develop highly competitive, cost-effective batteries. It also ensures a stable supply of battery to both Toyota and other customers globally.
- Panasonic is one of the leading EV battery manufacturers with a 24.1% market share.
General Motors and LG Chem
- GM and LG Chem partnership was announced on December 5, 2019.
- The two companies invested in an equally owned joint venture company as part of their plans to mass-produce battery cells to be used in future battery-electric vehicles. Following the partnership, the companies established a battery cell assembly plant in the Lordstown area of Northeast Ohio.
- LG Chem is the largest diversified chemical company in the globe. In the EV battery market, the company has a global market share of 10.5%.
Honda Motors and CATL
- On July 10, 2020, Honda Motors and CATL signed an agreement to strengthen their partnership through the formation of a strategic alliance on NEV batteries. The agreement paved way for discussions on various areas such as stable supply, joint development, as well as recycling and reuse of batteries.
- Following the partnership, Honda will enjoy a stable supply of NEV batteries for its battery electric vehicles (BEVs) from CATL. The two companies also plan to expand the alliance to a global scale in the future.
Tesla and Panasonic
- On July 10, 2020, Tesla and Panasonic entered into an amended agreement for automotive-grade lithium-ion battery cells.
- According to the new partnership, Tesla will manufacture the batteries for Tesla at Gigafactory Nevada.
- The partnership involves specific terms with regard planned investment, pricing, new technology, and production capacity commitments.
Toyota and BYD Company Ltd.
- On April 7, 2019, Toyota and BYD announced their partnership that involved establishment of a joint venture to carry out research and development of BEVs. The Joint venture will help in the development of superior BEVs through merging the two firms’ strengths and engaging in friendly rivalry.
- The two companies will partner to address the diverse needs of their clients by developing appealing BEVs and advancing mass adoption. BYD is a leading player in the EV market with a global market share of 9.5%.
Geely Automobile Holdings and LG Chem.
- On June 13, 2019, LG Chem and Geely announced a partnership involving production and sale of NEV batteries. The new joint venture agreement has a 50:50 share structure.
- Geely wants to leverage the partnership as it gradually shifts its focus to electrified vehicles through the Blue Geely Initiative.
Volkswagen AG and Northvolt AB
- In June 2019, Volkswagen and Northvolt entered into a joint venture involving production of lithium-ion batteries. The objective of the partnership was to construct a factory for the batteries in Salzgitter. Production is projected to start in 2023 with an initial output of 16 GWh.
- Northvolt is a leading supplier of high-quality battery cells and systems in Europe. The company is based in Sweden.