Toyota (7203.T) shares soared 5% late Monday after the Japanese auto company announced that it will introduce high-performance, solid-state batteries and other technologies to cut consumer costs and improve driving ranges of future electric vehicles (EVs).
Toyota’s next-generation battery development and a plan to radically redesign production factories constitute a prelude to the company’s new competitive entry into the highly competitive and fast-growing EV market, in which it has lagged behind rivals led by Tesla (TSLA.O).
The plan announced one day prior to an annual shareholders meeting over company governance and strategy, including a slow pivot to EV battery under former CEO Akio Toyoda.
Company spokespersons said that the objective is to launch next-generation lithium-ion batteries with longer ranges and quicker charging capacities starting in 2026.