"Toyota builds third hybrid battery plant"

Detroit News

Toyota is preparing to rev up production of hybrids, announcing Tuesday its third plant in Japan for producing batteries that are key components for the "green" cars.

Just last week, it announced that it was building a second such battery plant.

Toyota Motor Corp. has emerged the world leader in hybrids with its hit Prius, which has sold more than a cumulative 1 million vehicles over the last decade. Sometime after 2010, it hopes to sell 1 million hybrids a year.

For that, it needs to boost battery production as Honda Motor Co. and other automakers aim to catch up with their new gas-and-electric hybrids -- a technology that is growing in appeal for the world's drivers as gas prices soar.

The 30 billion yen ($291 million) plant in Miyagi prefecture, northern Japan, will be operated by Panasonic EV Energy Co., Toyota's joint venture with Matsushita Electric Industrial Co.

Set to be running by 2010, the factory will make nickel-metal hydride batteries, with production capacity at 200,000 a year, with start-up production at about half of that.

The latest move follows a similar announcement just last week about Toyota's plans to build a 20 billion yen ($194 million) plant in Shizuoka, in central Japan, also to produce nickel-metal hydride batteries for gas-electric hybrid vehicles.

Hybrids reduce pollution and emissions that are linked to global warming by switching between a gasoline engine and an electric motor to deliver better mileage than comparable standard cars.

Last week, Honda, Japan's second-biggest automaker after Toyota, said it will boost hybrid sales to 500,000 a year by sometime after 2010. Honda said it will introduce a new hybrid-only model next year for a lineup of four hybrids.

Nissan Motor Co., which still hasn't developed its own hybrid for commercial sale, said it will have its original hybrid by 2010.

Nissan says its joint venture with electronics maker NEC Corp. will start mass-producing lithium-ion batteries in 2009 at a plant in Japan.

Lithium-ion batteries, now common in laptops, produce more power and are smaller than nickel-metal hydride batteries. Toyota has said lithium-ion batteries may be used in plug-in hybrids, which can be recharged from a home electrical outlet, but it has not given details about a plant on such batteries.