Toyota Motor Corp. and Chinese electric-car maker BYD said their joint venture to design and develop battery-electric cars will be set up next year and will be based in China.
The two companies said in a statement that they would each invest 50 percent of the capital needed to establish the company. The companies did not disclose the value of the venture.
Widely considered a late comer in embracing battery EVs, compared with rivals including Nissan, Toyota had flagged in June that it aimed to get half of its global sales from EVs, including gasoline hybrids, by 2025, five years ahead of schedule.
The Toyota-BYD venture aims to develop vehicles that run solely on batteries, rather than plug-in hybrid or gasoline-electric vehicles which also have a combustion engine.
In July, the companies said they would develop full-electric sedans and SUVs, which would be sold under the Toyota brand in China before 2025.
Toyota also develops hydrogen fuel-cell vehicles and plans to launch fuel-cell car models with its Chinese partners, Guangzhou Automobile Group (GAC) and FAW Group, in China, as the government increases support for fuel-cell vehicles.
Toyota is planning to launch its first battery EV, a version of its C-HR/IZOA compact crossover, next year.
Shenzhen-based BYD, whose models include the Song series and the Qin plug-in hybrid electric vehicle, aims to move to full-electric vehicles. However, its profits are expected to drop this year as China cuts subsidies on EV.
