Toyota Motor Corporation and Panasonic Corporation concluded today a business-integration contract and a joint-venture contract toward the establishment of a new company (joint venture) related to the automotive prismatic battery business.

According to the agreement, Toyota and Panasonic plan to establish the joint venture by the end of 2020. The ratio of equity participation in the joint venture will be 51% for Toyota and 49% for Panasonic.

The scope of the joint venture's business operations will cover research, development, production engineering, manufacturing, procurement, order receipt, and management related to automotive prismatic lithium-ion batteries, solid-state batteries, and next-generation batteries.

Toyota will transfer equipment and personnel to the joint venture in the areas of development and production engineering related to battery cells. Panasonic will transfer equipment, other assets, liabilities, personnel, and other items to the joint venture in the areas of development, production engineering, manufacturing (at plants in Japan and in Dalian, China), procurement, order receipt, and management functions related to the automotive prismatic battery business.

The total number of employees from both companies related to operations subject to transfer to the joint venture is 3500 (as of the end of December 2018).

Products produced by the joint venture will be sold to various automakers through, in principle, Panasonic.

Toyota is to contribute know-how and market data related to electrified vehicles, technologies related to solid-state batteries and more, and Toyota-style manufacturing capabilities (monozukuri); while Panasonic is to contribute technologies related to high-capacity and high-output batteries, mass-production technologies, and a customer base both in Japan and overseas.

Toyota and Panasonic plan to coordinate with each other from the vehicle planning and conception stage, and promote the acceleration of high-capacity and high-output battery development.