Working Toward the Mobility Society of the Future

Message from the President The Source of Our Value Creation: What Makes Us Toyota Value Creation Story: Working toward the Mobility Society of the Future Business Foundations for Value Creation Corporate Data > Making Ever-better Cars > Initiatives to Achieve Carbon Neutrality Software and Connected Initiatives > Commercial Sector Initiatives > Woven City Initiatives to Achieve Carbon Neutrality: The Development and Supply of Batteries Blazing a Path toward the Future of Electrified Vehicles through the Integrated Development of Batteries and Vehicles Toyota's Plans for a Full Lineup of Batteries In addition to promoting a full lineup of electrified vehicles, we have been developing and manufac- turing a full lineup of batteries. These develop- ment efforts are organized by type of electrified vehicle. For HEVS, our focus is on power output, or instantaneous power, while for PHEVS and BEVS, our focus is on capacity, what we might call "endurance." Bipolar Nickel-metal Hydride Battery Battery module Conventional structure As for batteries for HEVS, we have been continu- ously upgrading nickel-metal hydride batteries and lithium-ion batteries, taking advantage of their respective characteristics. In particular, we took on the challenge of developing a bipolar nickel-metal hydride battery for the Aqua, which underwent a full-scale redesign completed in July 2021. Thanks to our efforts, we are the first in the world to commercialize this type of onboard battery for driving. Compared with the batteries used in the previous generation of the Aqua, the output density has been doubled, giving the car powerful acceler- ation. We are currently engaged in development aimed at creating more advanced lithium-ion batteries by the second half of the 2020s. In the new Aqua-the world's first use as a vehicle drive battery Battery stack Doubled power density Battery stack Current collector. Anode Separator Cathode Case Bipolar structure Battery module Taking up the challenge of innovating battery structure for more powerful acceleration Power density doubled from the conventional batteries for the Aqua What Is Carbon Neutrality? In the case of industrial products, carbon neutrality means reducing CO2 emissions to net zero throughout the product life cycle, from the procurement of raw materials, manufac- LCA (Life Cycle Assessment) Battery recycling Battery recycling MATERIALS T Materials turing, and transportation Energy through to use, recycling, and disposal. PARTS Parts Vehicle manufacturing production Renewable energy Thermal power generation generation Battery collection Battery reuse Well to Wheel Vehicle driving Tank to Wheel Disposal Fuel production Well to tank Striking a Balance among Five Factors To develop batteries that our customers can use with peace of mind, we focus on producing products that optimally balance five factors: safety, long service life, high-level quality, good yet affordable, and outstanding performance. For example, a longer service life affects a vehicle's residual value. In terms of cruising range, outstanding performance based on high energy density is crucial. On the other hand, over-emphasis on charging speed may increase the danger of overheating or even fire and thus decrease battery safety. This concept has remained unchanged since batteries were installed in the first-generation Prius, and it applies to all the batteries in all of our electrified vehicles. Toyota is committed to balancing the five factors, as too much emphasis on one could be detrimental to the others. That is why we believe that the integrated development of batteries and vehicles is essential. How batteries are used depends on how the vehicles in which they are installed are used. The environments in which vehicles are operat- ed differ according to each vehicle's mode of use as a taxi or for commuting, for example- as well as geographic location. These factors will affect such conditions as charging frequen- cy and battery temperature. Accordingly, we carry out mock driving tests that assume a diverse range of vehicle usage modes in order to obtain data on actual operating environments and provide feedback to inform the evaluation and design of batteries. To determine the balancing point of the five factors discussed above, it is necessary to obtain driving data that includes driving condi- tions and usage environments, find out what the conditions would be like if batteries were used instead, and repeatedly verify what is happening inside the batteries. Such steady and earnest efforts for both batteries and vehicles are the secret behind Toyota's advantages. Toyota Times Integration with Vehicles- The Strengths of Toyota's Battery Development Strategy Toyota's Efforts for Batteries That Enable Peace of Mind Here, we introduce three examples of the effort required to produce batteries that can be used safely, using lithium-ion batteries as the focus of our explanation. The first example is about our pursuit of safety. It is known that each battery cell shows signs of localized abnormal heat generation during spirited driving or other driving that places a large load on the battery. By analyzing the phenomena occur- ring inside the battery and conducting a vast number of model experiments, we have been able to clarify the effect of driving style on the battery, as well as the mechanism of this effect. Based on the results, we have been able to detect signs of abnormal local heating of cells through multiple monitoring of voltage, current, and temperature of individual cells, blocks of cells, and the entire battery pack. The battery is then controlled to prevent abnormal heat generation. We adhere to our concept of ensuring safety, security, and reliability right down to the local areas within each battery when it comes to BEV systems. The second example is our commitment to long service life. We have applied the technologies that we have cultivated through the development of batteries for HEVS to PHEVS, and the batteries in the C-HR BEV have a much higher capacity retention rate after 10 years than the batteries hitherto used in our PHEVS. The battery in the Toyota bZ4X, which was launched in 2022, was developed targeting world-class capacity reten- tion of 90 percent after 10 years." * Estimated value is calculated assuming average usage set by Toyota using individual battery cells. Actual battery capacity retention ratio when installed in a vehicle environment may vary depending on customer use conditions, usage environment, and driving methods. Therefore, a 90% battery capacity retention ratio after 10 years is not guaranteed. The third example has to do with our efforts to achieve high-level quality. If metallic foreign matter enters a battery during the manufacturing process and causes a direct electrical connection between the anode and cathode, the possibility of product failure increases. To address this issue, we confirm the shape, composition, size, and possible effect on endurance of every piece of foreign matter that could enter during the manufacturing process, and we TOYOTA MOTOR CORPORATION 20 INTEGRATED REPORT