Toyota Shares Jump 5% After Next-Gen Battery Announcement

Toyota’s stock price spiked 5% Tuesday after the company announced it will introduce a full lineup of battery electric vehicles with “next generation” batteries from 2026.

Manufactured in a new plant named BEV Factory, the company is aiming to produce electric vehicles with a range of 1,000 kilometers. This continues a more aggressive push by the Japanese automaker toward all-electric vehicles under new CEO Koji Sato. BEV Factory aims to produce about 1.7 million vehicles by 2030.

By contrast, the Tesla Model 3 has a range of about 430 kilometers, while the long-range model has a range of about 570 kilometers.

Toyota has a goal of achieving sales of 1.5 million all-electric vehicles annually by 2026, and selling 3.5 million all-electric vehicles per year by 2030.

Separately, the company is also developing a method for mass producing all-solid-state batteries for battery electric vehicles and aims to commercialize this in 2027 to 2028. Toyota said it will be looking at a 20% improvement in cruising range for its all-solid-state batteries, compared to the current batteries.

The Japanese carmaker said that it has discovered a technological breakthrough that overcomes the challenge of battery durability in its all-solid-state batteries

This latest news confirms the inexorable march of all major automakers toward a fully electric future. The 5% stock surge indicates that investors will continue to take very kindly to strategic announcements from carmakers that confirm their push toward electrification at scale.