Toyota to Make EV Batteries in Changshu

Toyota and its battery supplier/subsidiary, Primearth EV Energy, plan to establish a joint venture with two Chinese companies in the city of Changshu, reveals Hunan Corun New Energy, one of the partners. The new venture, to be approved by the Chinese government, is named CORUN PEVE (CHINA) AUTOMOTIVE BATTERY CO., LTD and devoted to developing, manufacturing, and marketing nickel metal-hydride (NiMH) battery packs for EVs and hybrids.

Toyota and Primearth EV Energy will together own 50% of the joint venture, and Hunan Corun 40%. An investment company local to Changshu, where the venture will be based, is to have a 10% stake.

Partners Form of investment Amount of investment (in Japanese Yen/JPY) Shares
Hunan Corun New Energy Co., Ltd. Cash 2,084,000,000 40%
Changshu Xinzhongyuan Investment Co., Ltd. Cash 521,000,000 10%
Primearth EV Energy Cash 2,136,100,000 41%
Toyota Motor (China) Investment Co., Ltd. Cash 260,500,000 5%
Toyota Tsusho Cash 208,400,000 4%

With a registered capital of 5,210,000,000 JPY, CORUN PEVE will receive a total investment of 15,630,000,000 JPY. The announcement from Hunan Corun, made on May 29, did not specify on the production capacity of the Changshu factory or when it will open.

In Changshu, a city in the Jiangsu province and not far from Shanghai, Toyota runs a major auto parts factory as well as R&D center–TMEC (Toyota Motor Engineering & Manufacturing (China) Co., Ltd.).

Hunan Corun New Energy is a Shanghai-listed maker of EV batteries based in Changsha, Hunan.