Following a feasibility study conducted in 2017, Toyota and Panasonic have now agreed to establish a joint venture in 2020 to manufacture batteries for electric vehicles.

Under the agreement, Toyota will hold a 51% stake in the new company, with Panasonic owning the rest. Additionally, Panasonic will transfer five automotive battery production facilities in Japan and China to the new company, with the exception of its facility in the United States.

Both companies will jointly supply equipment and personnel to support the joint venture’s business operations, which 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.

“Together with Panasonic, we want to hone our competitiveness in batteries, which represent one of the core technologies of electrified vehicles,” said Shigeki Terashi, executive vice president of Toyota.

“Uniting with Toyota’s battery and production-engineering technologies provides us an excellent opportunity for being able to evolve our automotive prismatic batteries, which have an established track record of performance and safety, faster than ever,” added Masahisa Shibata, senior managing executive officer at Panasonic.