Toyota teams up with Japanese oil giant to build all-solid-state EV batteries
Japanese automaker Toyota has teamed up with the oil giant Idemitsu Kosan to construct a large-scale lithium sulfide plant to supply raw materials for Toyota’s all-solid-state EV battery production line.
Toyota has been one of the key players in the development of all-solid-state EV batteries, which is seen as the next evolution of EV batteries. However, these promises have been hollow for many years – until now.
Idemitsu Kosan announced that it would be initiating construction of a lithium sulfide production plant, which is one of the key raw materials used in these types of batteries. This will provide a reliable supply of the material to create what’s been dubbed the “holy grail” for the EVs of the future.
All-solid-state batteries have been touted for their advantages on all fronts, including energy density, charging speeds, and driving ranges. Unlike traditional lithium-ion batteries that use liquid electrolytes, these batteries use a solid electrolyte.
Idemitsu has already stated that it aims to begin mass production of these batteries in 2027 or 2028, with an estimated capacity of 1,000 metric tons of lithium sulfide produced by the new plant.
The plan has already won approval from the Japanese Ministry of Economy, Trade, and Industry (METI). Officials from METI have approved plans from the construction site, which is estimated to cost $142 million, or 21.3 billion yen.
Idemitsu’s executive officer, Tetsuji Mishina, made the announcement at the company’s oil refinery in China, where it confirmed it would build the facility. He also announced that Toyota will be their first partner. This should be no surprise as the two companies have cooperated on all-solid-state EV battery development since 2023.
It’s yet another piece of good news for Toyota, after it was granted an METI certification in September 2024. This certification approved the company to begin building these new batteries in Japan.
Observers will be delighted to see that Toyota’s long-awaited plans are apparently now taking shape. Still, other auto manufacturers already appear to be ahead of them in the race, including German rival Mercedes-Benz and a slew of Chinese auto manufacturers already using semi-solid-state batteries.
Aside from solid-state batteries, it’s an example of Japan’s attempts to remove its dependence on China and South Korea for battery production. The Land of the Rising Sun has been working to boost its domestic battery manufacturing industry for some time, and this is yet another step forward in that respect.
