Toyota and Panasonic say they are setting up a joint venture to research, manufacture and sell batteries for ecological autos, an increasingly lucrative sector amid concerns about global warming.
The Japanese automaker and the Japanese electronics maker said in a joint statement, Toyota will take a 51% stake and Panasonic 49% in the joint venture, which is to be running by the end of 2020.
Joint venture
Products will be sold to various automakers, they said.
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The companies have been studying working together on batteries since 2017.
Panasonic will transfer equipment, assets and workers from its plants in Japan and China to the joint venture, and 3 500 workers from both companies will be moved to the joint venture.
Innovations in batteries are critical for electric vehicles.