Toyota Hybrids Are Set for a Lithium-Ion Battery Shift

Toyota is getting ready to put modern lithium-ion batteries into more of its hybrid models, replacing the nickel-metal hydride technology that has powered most of its hybrids since the original Prius. The automaker plans to convert battery production capacity in Japan between 2027 and 2028 for up to 600,000 vehicles, saying the new cells will boost efficiency and cost less.

According to Auto News, Toyota is doubling down on hybrids as more new-car buyers move away from non-hybrid combustion engines. The RAV4 has already made the switch to a lithium-ion pack, and other hybrids will follow.

Chief accounting officer Takanori Azuma said Toyota will "gradually transition from nickel to lithium while simultaneously expanding our production capacity." He added that this could cut costs by tens of thousands of yen per vehicle and that the company wants to improve performance while reducing expenses.

Toyota is also developing advanced EV batteries. Working with partners including CATL, it is reportedly developing bipolar lithium-ion cells with ranges of up to 621 miles. Solid-state batteries are also in the works, with 10- to 80-percent charging in under 10 minutes and a possible range of up to 745 miles.

Sales data for the April-June quarter show Toyota's overall retail sales slipped 3.5 percent to 2.55 million vehicles, while electrified vehicle sales rose 12 percent to 1.41 million.