Why Toyota Doesn't Like Electric Vehicles

What is an EV (technically)?

Technically speaking, a vehicle is considered an EV if it can be powered by electric energy alone. Toyota have been producing hybrid electric vehicles (HEV) for nearly 3 decades now, with the Toyota Prius being announced in 1996. Even though Toyota has more hybrid drive-trains models than every other manufacturer, this does not count towards EV because the electric motors cannot propel the vehicle by themselves. (One condition to get the Zero-Emission Vehicle (ZEV) credit, the vehicle must be able to be powered by electric energy alone).

Toyota's Past Opinion on EVs

During the height of COVID-19 there was a craze around electric vehicles. Prices of nearly all vehicles went up, but electric vehicles went up the most. Toyota was one of the few manufacturers that did not increase their electric vehicle production or even add more EV models.
The CEO of Toyota, Akio Toyoda, said at the time that he believed that electric vehicles would not be the future and that the industry should temper expectations on electric vehicles, and find an alternative. He was certainly vindicated on that front. Ford, GM and many other legacy manufacturers have slowed EV production and cancelled/delayed major EV production projects. Toyoda stated that he does not think EV's will ever achieve more than 30 percent market share.

Toyota's Reasoning

Toyota has taken a cautious approach toward fully embracing electric vehicles (EVs), and their reasons are multifaceted. Let’s delve into the nuances:

• Diverse Strategy: Toyota believes in a “multi-pronged approach” rather than putting all its eggs in one basket. While many competitors focus primarily on battery electric vehicles (BEVs), Toyota has invested heavily in hybrid and plug-in hybrid electric vehicles (PHEVs). These hybrid options remain popular among consumers seeking lower emissions and better fuel efficiency.
• Solid-State Batteries and Hydrogen Fuel Cells: Toyota is also exploring solid-state batteries and hydrogen fuel cell vehicles (FCVs). The Japanese automaker sees these technologies as having long-term potential for sustainable transportation. They argue that a diverse approach is necessary to cater to different markets, infrastructure limitations, and consumer preferences.
• Life Cycle Considerations: Toyota emphasizes evaluating the entire life cycle of a vehicle, including production, usage, and disposal, when assessing its environmental impact. They caution against rushing into EVs without considering these broader factors.
• Infrastructure and Cost Concerns: Toyota’s former CEO, Akio Toyoda, has expressed concerns about the practicality of a rapid shift to EVs. He considers EVs to be “overhyped” due to the lack of supporting infrastructure and their high cost, which could hinder mass adoption.

Toyota's Future Plans

By 2026, Toyota aims to launch 10 new fully-electric cars. This move significantly broadens their range of zero-emissions vehicles, keeping pace with both legislation and aggressive rivals.
Toyota wants to make big steps in battery and range technology. Toyota also wants consumer sentiment toward EV and infrastructure to be more favorable before they make the big push.

• Performance Lithium-Ion Battery: Toyota’s upcoming EVs will be powered by the Performance lithium-ion battery, providing an impressive nearly 500-mile (800 km) cruising range. These vehicles will also feature enhanced aerodynamics and reduced weight. Compared to their first electric model (the bZ4X), EVs using the Performance battery will cost 20% less and offer fast charging in 20 minutes or less.
• Lithium Iron Phosphate Battery (LFP): Expected in 2026 or 2027, this battery focuses on affordability. It will increase cruising range by 20% (roughly 375 miles) while reducing costs by 40% compared to the bZ4X. LFP batteries are heavier and less energy-dense than other types, but are perfect where space is not really an issue (i.e. like electric vehicles). LFP batteries are easier to manufacture and are less likely to catch fire. Tesla has already started using LFP batteries in their vehicles, with other manufacturers such as Toyota to follow.
• High-Performance Battery (2027-2028): Toyota is developing a high-performance battery that will push the cruising range to over 620 miles (1000 km). This battery combines a bipolar structure with Li-ion chemistry and a high nickel cathode. It’s also expected to offer an additional 10% cost reduction compared to the Performance battery.
• Solid-State Batteries: Toyota has made a “breakthrough” with solid-state batteries, aiming for commercial use by 2027-2028. These batteries could provide a range of roughly 620 miles and ultrafast charging in under 10 minutes. Further development aims to deliver over 745 miles (1200 km) of range.
• Aerodynamics Innovations: Toyota collaborates with the Space Division of Mitsubishi Heavy Industries to improve aerodynamics, using hypersonic tech inspired by rockets. They’re also exploring flatter battery tech to reduce overall vehicle height.
• bZ (Beyond Zero) Series: Toyota’s future lineup will feature 15 dedicated BEVs, including seven carrying the bZ (Beyond Zero) brand moniker. These vehicles will play a crucial role in Toyota’s goal of achieving carbon neutrality by 2050.