Toyota Plans Mass Production of Fifth-Gen Hybrid Batteries by 2027, Targets 6 Million Annual EV Sales

Toyota plans to begin production of its next-generation hybrid batteries in 2027 and will expand its overall battery capacity in 2027 and 2028. The new batteries will offer enhanced performance and greater cost competitiveness, with initial domestic Japanese production capacity sufficient to supply battery cells for 600,000 vehicles annually. The company expects to sell nearly 6 million electrified vehicles in the new fiscal year starting in May, representing 56% of combined global sales for Toyota and Lexus. Of these, global hybrid vehicle sales are projected to reach 5 million units in 2024, accounting for nearly 45% of the company’s total global sales. By region, Toyota forecasts that by the end of 2027, hybrids will account for more than 50% of its U.S. sales, rise to approximately 55% in China, remain around 70% in Europe, stay above 50% in Japan despite a slight decline, and exceed 25% slightly in the rest of Asia. In 2024, Toyota fully took over its battery business, renaming the former Primearth EV Energy to Toyota Battery Co.