Toyota and Nissan want to challenge China's EV battery reign

Toyota and Nissan are set to invest $7 billion (1 trillion yen) to enhance Japan's electric vehicle (EV) battery production, aiming to reduce reliance on China and South Korea, which currently dominate the market. The Japanese government is supporting this initiative to establish a domestic supply chain, as domestic EV sales have plummeted by 39% in the first half of 2024. The decline is attributed to a lack of options, with foreign brands like BYD gaining significant market share due to their diverse model offerings. BYD's passenger car imports to Japan surged by 184% in the same period. The investment from Toyota and Nissan will increase battery production capacity from 80 GWh to 120 GWh, with a target of 150 GWh by 2030. Toyota plans to invest approximately $1.7 billion to ramp up production at two subsidiaries and open a new battery plant for Lexus EVs by 2029. Nissan will invest around $1 billion to start producing lithium iron phosphate (LFP) batteries by 2028. Additionally, Panasonic is collaborating with Subaru and Mazda to enhance domestic battery production, investing about $3.8 billion. Despite these efforts, China remains the leader in the global EV battery market, with CATL and BYD holding significant shares.

- Toyota and Nissan are investing $7 billion to boost Japan's EV battery production.

- Domestic EV sales in Japan fell by 39% in the first half of 2024.

- BYD has significantly increased its market presence in Japan.

- The investment aims to increase battery production capacity to 150 GWh by 2030.

- China continues to dominate the global EV battery market.